Given the following data, what is the value of ending inventory if the FIFO periodic method is used? $\begin{array} { | l | l | }
\hline \text { Sales revenue } & 200 \text { units at } \$ 20 \text { per unit } \
\hline \text { Beginning inventory } & 60 \text { units at } \$ 12 \text { per unit } \
\hline \text { Purchases } & 210 \text { units at } \$ 13 \text { per unit } \
\hline
\end{array}$

Question

Given the following data, what is the value of ending inventory if the FIFO periodic method is used? $\begin{array} { | l | l | } 
\hline \text { Sales revenue } & 200 \text { units at } \$ 20 \text { per unit } \
\hline \text { Beginning inventory } & 60 \text { units at } \$ 12 \text { per unit } \
\hline \text { Purchases } & 210 \text { units at } \$ 13 \text { per unit } \
\hline
\end{array}$

Quizplus · Accepted Answer

Under the FIFO (First-In, First-Out) periodic method, the cost of the oldest inventory is assigned to the cost of goods sold first. Here, 200 units were sold. The beginning inventory had 60 units at $12 each, and purchases added 210 units at $13 each. The ending inventory would consist of the most recent purchases. Since 200 units were sold out of the total 270 units (60 beginning + 210 purchased), 70 units remain in ending inventory. These would all be from the purchases at $13 each, making the ending inventory value 70 units * $13 = $910.

Given the Following Data, What Is the Value of Ending