Table 6-4
Assume the following data for Burnette Sales for 2019: $$\begin{array} { | c | l | }
\hline \text { Beginning inventory } & 10 \text { units at } \$ 7 \text { each } \
\hline \text { March } 18 \text { purchase } & 15 \text { units at } \$ 9 \text { each } \
\hline \text { Sale } & 20 \text { units at } \$ 15 \text { each } \
\hline \text { June } 10 \text { purchase } & 20 \text { units at } \$ 10 \text { each } \
\hline \text { Sale } & 12 \text { units at } \$ 15 \text { each } \
\hline \text { October } 30 \text { purchase } & 12 \text { units at } \$ 11 \text { each } \
\hline \text { Sale } & 10 \text { units at } \$ 16 \text { each } \
\hline
\end{array}$$ On December 31, a physical count reveals 15 units on hand.
-Refer to Table 6-4. Under the FIFO method (assuming a perpetual inventory system), ending inventory would be valued at:

Question

Table 6-4
Assume the following data for Burnette Sales for 2019: $$\begin{array} { | c | l | } 
\hline \text { Beginning inventory } & 10 \text { units at } \$ 7 \text { each } \
\hline \text { March } 18 \text { purchase } & 15 \text { units at } \$ 9 \text { each } \
\hline \text { Sale } & 20 \text { units at } \$ 15 \text { each } \
\hline \text { June } 10 \text { purchase } & 20 \text { units at } \$ 10 \text { each } \
\hline \text { Sale } & 12 \text { units at } \$ 15 \text { each } \
\hline \text { October } 30 \text { purchase } & 12 \text { units at } \$ 11 \text { each } \
\hline \text { Sale } & 10 \text { units at } \$ 16 \text { each } \
\hline
\end{array}$$ On December 31, a physical count reveals 15 units on hand.
-Refer to Table 6-4. Under the FIFO method (assuming a perpetual inventory system), ending inventory would be valued at:

Quizplus · Accepted Answer

Under the FIFO (First-In, First-Out) method, the oldest inventory items are sold first. The ending inventory would consist of the most recent purchases. From the data, the last purchases were 12 units at $11 each and before that, 20 units at $10 each. Since there are 15 units left, all 12 units from the October 30 purchase ($11 each) and 3 units from the June 10 purchase ($10 each) are in the ending inventory. Thus, the ending inventory is calculated as (12 units * $11) + (3 units * $10) = $132 + $30 = $162.

Table 6-4 Assume the Following Data for Burnette Sales for 2019

Table 6-4
Assume the Following Data for Burnette Sales for 2019