Ace Systems, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:
On January 28, Ace Systems sells 18 units of this product. The other 12 units remain in inventory at January 31.
-Refer to above data. Assuming that Ace Systems uses the FIFO flow assumption, the 12 units of this product in inventory at January 31 have a total cost of:

Question

Ace Systems, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:
  On January 28, Ace Systems sells 18 units of this product. The other 12 units remain in inventory at January 31.
-Refer to above data. Assuming that Ace Systems uses the FIFO flow assumption, the 12 units of this product in inventory at January 31 have a total cost of:

Quizplus · Accepted Answer

The first 12 units were purchased at $28.50 each, so the total cost is 12 x $28.50 = $342.