Santa Fe Tile Company had the following inventory purchases and sales during the month of May.The company uses the periodic inventory method. $$\begin{array} { | c | c | c | c | c | c | c | }
\hline & \text { Purchases } & & & \text { Sales } & & \
\hline \text { Date } & \text { Units } & \text { Unit Cost } & \text { Total } & \text { Units } & \text { Unit Price } & \text { Total } \
\hline \text { May 1 } & 100 & \$ 4 & \$ 400 & & & \
\hline 5 & 200 & 5 & 1,000 & & & \
\hline 10 & & & & 100 & \$ 10 & \$ 1,000 \
\hline 15 & 100 & 6 & 600 & & & \
\hline 20 & 150 & 7 & 1,050 & & & \
\hline 25 & & & & 200 & 11 & \$ 2,200 \
\hline 30 & 160 & 8 & 1,280 & & & \
\hline & 710 & & \$ 4,330 & 300 & & \$ 3,200 \
\hline
\end{array}$$
- If Santa Fe uses FIFO costing,how much was the Ending inventory balance?

Question

Santa Fe Tile Company had the following inventory purchases and sales during the month of May.The company uses the periodic inventory method. $$\begin{array} { | c | c | c | c | c | c | c | } 
\hline & \text { Purchases } & & & \text { Sales } & & \
\hline \text { Date } & \text { Units } & \text { Unit Cost } & \text { Total } & \text { Units } & \text { Unit Price } & \text { Total } \
\hline \text { May 1 } & 100 & \$ 4 & \$ 400 & & & \
\hline 5 & 200 & 5 & 1,000 & & & \
\hline 10 & & & & 100 & \$ 10 & \$ 1,000 \
\hline 15 & 100 & 6 & 600 & & & \
\hline 20 & 150 & 7 & 1,050 & & & \
\hline 25 & & & & 200 & 11 & \$ 2,200 \
\hline 30 & 160 & 8 & 1,280 & & & \
\hline & 710 & & \$ 4,330 & 300 & & \$ 3,200 \
\hline
\end{array}$$
- If Santa Fe uses FIFO costing,how much was the Ending inventory balance?

Quizplus · Accepted Answer

Under FIFO, the oldest inventory costs are used up first. After selling 300 units (100 on May 10 and 200 on May 25), the remaining inventory is 410 units (710 total purchased - 300 sold). The ending inventory consists of 100 units at $7 (from May 20) and 160 units at $8 (from May 30), totaling $2,930.

Santa Fe Tile Company Had the Following Inventory Purchases and Sales