Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to the ending inventory using FIFO. $$\begin{array} { | r | l | l | l | }
\hline \text { Date } & \text { Activities } & \text { Units Acquired at Cost } & \text { Units Sold at Retail } \
\hline \text { May 1 } & \text { Beginning Inventory } & 150 \text { units } @ \$ 10.00 & \
\hline 5 & \text { Purchase } & 220 \text { units } @ \$ 12.00 & \
\hline 10 & \text { Sales } & & 140 \text { units } @ \$ 20.00 \
\hline 15 & \text { Purchase } & 100 \text { units } @ \$ 13.00 & \
\hline 24 & \text { Sales } & & 90 \text { units } @ \$ 21.00 \
\hline
\end{array}$$

Question

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to the ending inventory using FIFO. $$\begin{array} { | r | l | l | l | } 
\hline \text { Date } & \text { Activities } & \text { Units Acquired at Cost } & \text { Units Sold at Retail } \
\hline \text { May 1 } & \text { Beginning Inventory } & 150 \text { units } @ \$ 10.00 & \
\hline 5 & \text { Purchase } & 220 \text { units } @ \$ 12.00 & \
\hline 10 & \text { Sales } & & 140 \text { units } @ \$ 20.00 \
\hline 15 & \text { Purchase } & 100 \text { units } @ \$ 13.00 & \
\hline 24 & \text { Sales } & & 90 \text { units } @ \$ 21.00 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Under FIFO, the oldest costs are assigned to the cost of goods sold, and the newest costs are assigned to ending inventory. After sales, 240 units remain (150 + 220 + 100 - 140 - 90). The ending inventory consists of 100 units from the May 15 purchase at $13.00 and 140 units from the May 5 purchase at $12.00. The cost is (100 x $13) + (140 x $12) = $2,980.

Salmone Company Reported the Following Purchases and Sales of Its