Metro Computer Company had the following balances and transactions during 2014. $$\begin{array} { | l | l | }
\hline \text { Beginning inventory } & 100 \text { units at } \$ 75 \
\hline \text { March } 10 & \text { Sold } 50 \text { units } \
\hline \text { June } 10 & \text { Purchased } 200 \text { units at } \$ 80 \
\hline \text { October 30 } & \text { Sold } 150 \text { units } \
\hline
\end{array}$$
-What would the Inventory amount be as reported on the balance sheet at December 31,2014 if the perpetual First-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

Question

Metro Computer Company had the following balances and transactions during 2014. $$\begin{array} { | l | l | } 
\hline \text { Beginning inventory } & 100 \text { units at } \$ 75 \
\hline \text { March } 10 & \text { Sold } 50 \text { units } \
\hline \text { June } 10 & \text { Purchased } 200 \text { units at } \$ 80 \
\hline \text { October 30 } & \text { Sold } 150 \text { units } \
\hline
\end{array}$$
-What would the Inventory amount be as reported on the balance sheet at December 31,2014 if the perpetual First-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

Quizplus · Accepted Answer

The perpetual First-In, First-Out (FIFO) costing method assumes that the first units purchased are the first units sold. Therefore, the cost of goods sold is based on the cost of the oldest units in inventory.Beginning inventory: 100 units at $75 = $7,500March 10: Sold 50 units at $75 = $3,750June 10: Purchased 200 units at $80 = $16,000October 30: Sold 150 units at $80 = $12,000Ending inventory: 100 units at $80 = $8,000

Metro Computer Company Had the Following Balances and Transactions During