The following information pertains to the Fan Company's inventory item B1008:
$\begin{array}{rlrr}
\text { March 1 } & \text { Inventory Balance } & 400 \text { units } &@\$ 3.10 \
5 & \text { Purchase } & 1,400 \text { units } &@ \$ 3.20 \
14 & \text { Purchase } & 280 \text { units } &@ \$ 3.25 \
31 & \text { Inventory Balance } & 520 \text { units } &
\end{array}$
-In a periodic inventory system,the ending FIFO inventory is

Question

Quizplus · Accepted Answer

Under FIFO, the ending inventory consists of the most recent purchases. The ending inventory of 520 units would include 280 units from the March 14 purchase at $3.25 and 240 units from the March 5 purchase at $3.20. Calculating: (280 units x $3.25) + (240 units x $3.20) = $910 + $768 = $1,678.

The Following Information Pertains to the Fan Company's Inventory Item