Table 6-6 Sam's Wholesale Bikes $$\begin{array} { | l | l | }
\hline \text { January } 1 \text { inventory balance } & 15 \text { units at } \$ 350 \text { per unit } \
\hline \text { January } 4 \text { purchase } & 50 \text { units at } \$ 375 \text { per unit } \
\hline \text { January } 15 \text { sale } & 40 \text { units at } \$ 550 \text { per unit } \
\hline \text { February } 8 \text { purchase } & 80 \text { units at } \$ 405 \text { per unit } \
\hline \text { February } 15 \text { sale } & 70 \text { units at } \$ 550 \text { per unit } \
\hline
\end{array}$$
-Refer to Table 6-6. What is the value of the February ending inventory assuming that Sam's uses the perpetual FIFO inventory method?

Question

Table 6-6 Sam's Wholesale Bikes $$\begin{array} { | l | l | } 
\hline \text { January } 1 \text { inventory balance } & 15 \text { units at } \$ 350 \text { per unit } \
\hline \text { January } 4 \text { purchase } & 50 \text { units at } \$ 375 \text { per unit } \
\hline \text { January } 15 \text { sale } & 40 \text { units at } \$ 550 \text { per unit } \
\hline \text { February } 8 \text { purchase } & 80 \text { units at } \$ 405 \text { per unit } \
\hline \text { February } 15 \text { sale } & 70 \text { units at } \$ 550 \text { per unit } \
\hline
\end{array}$$
-Refer to Table 6-6. What is the value of the February ending inventory assuming that Sam's uses the perpetual FIFO inventory method?

Quizplus · Accepted Answer

The perpetual FIFO inventory method assumes that the first units purchased are the first units sold. Therefore, the ending inventory consists of the units purchased on February 8th, which cost $405 per unit. The ending inventory is 80 units, so the total value of the ending inventory is 80 * $405 = $14,175.

Table 6-6 Sam's Wholesale Bikes -Refer to Table 6-6