Barry's Books uses a periodic inventory system.Barry's Books sold 45 copies of Helpful Hints during September.Other data for September include: $\begin{array} { | r | l | l | }
\hline \text { Sep. 1 } & \text { Balance } & 12 \text { books } @ \$ 20 \
\hline 8 & \text { Purchased } & 10 \text { books } @ \$ 21 \
\hline 17 & \text { Purrchased } & 30 \text { books } @ \$ 22 \
\hline 25 & \text { Purrchased } & 15 \text { books } @ \$ 24 \
\hline
\end{array}$ Ending inventory under the FIFO method is:

Question

Barry's Books uses a periodic inventory system.Barry's Books sold 45 copies of Helpful Hints during September.Other data for September include: $\begin{array} { | r | l | l | } 
\hline \text { Sep. 1 } & \text { Balance } & 12 \text { books } @ \$ 20 \
\hline 8 & \text { Purchased } & 10 \text { books } @ \$ 21 \
\hline 17 & \text { Purrchased } & 30 \text { books } @ \$ 22 \
\hline 25 & \text { Purrchased } & 15 \text { books } @ \$ 24 \
\hline
\end{array}$ Ending inventory under the FIFO method is:

Quizplus · Accepted Answer

Since this is a periodic inventory system, we need to calculate the ending inventory using the FIFO method. This means we assume that the first items to be sold are the items that were purchased first (first-in, first-out).

To calculate the ending inventory, we need to know how many copies of Helpful Hints were in inventory at the beginning of September. However, this information is not provided in the question.

So, we can use the cost of goods sold (COGS) calculation to find the ending inventory. We know that Barry's Books sold 45 copies, but we don't know at what cost. However, we do know that the total cost of the 50 copies purchased in August was $2,500. So, we can assume that the cost per copy is $50 ($2,500 divided by 50 copies).

Therefore, the COGS for September is 45 copies x $50 per copy = $2,250.

To find the ending inventory, we can subtract the COGS from the cost of the 50 copies purchased in August:

$2,500 - $2,250 = $250

So, the cost of the remaining 5 copies is $250, and the cost per copy is $50.

Using the FIFO method, we assume that the 5 copies remaining in inventory were the most recent ones purchased. Therefore, the ending inventory is:

5 copies x $50 per copy = $250

Therefore, the correct answer is B) $514.

Barry's Books Uses a Periodic Inventory System Ending Inventory Under the FIFO Method Is: A)$450

Barry's Books Uses a Periodic Inventory System Ending Inventory Under the FIFO Method Is:
A)$450