Salmone Company reported the following purchases and sales of its only product.Salmone uses a perpetual inventory system.

-Determine the cost assigned to the ending inventory using FIFO.
A)$2,980
B)$2,460
C)$2,850
D)$2,590
E)$2,860

Question

Salmone Company reported the following purchases and sales of its only product.Salmone uses a perpetual inventory system.

-Determine the cost assigned to the ending inventory using FIFO. 
A)$2,980 
B)$2,460 
C)$2,850 
D)$2,590 
E)$2,860

Quizplus · Accepted Answer

FIFO (First-In, First-Out) assumes that the oldest inventory items are sold first. To determine the cost of ending inventory, you need to calculate the cost of the most recent purchases that remain unsold. The correct cost assigned to the ending inventory using FIFO is $2,980.

Salmone Company Reported the Following Purchases and Sales of Its