AAA Co.uses a periodic inventory system and has the following information in regard to its inventory: There are 500 units in ending inventory.What is the amount of the ending inventory using the FIFO method?
A)$3,000
B)$7,200
C)$7,800
D)$8,900

Question

AAA Co.uses a periodic inventory system and has the following information in regard to its inventory:  There are 500 units in ending inventory.What is the amount of the ending inventory using the FIFO method?
A)$3,000 
B)$7,200 
C)$7,800 
D)$8,900

Quizplus · Accepted Answer

When the FIFO method is used,the latest costs are assigned to the ending inventory as follows: (400 units @ $18)+ (100 units @ $17)= $8,900

AAA CoUses a Periodic Inventory System and Has the Following Information