Rodriguez Inc.had the following balances and transactions during 2015: What would the Ending Merchandise Inventory amount be as reported on the balance sheet at December 31,2015 if the perpetual first-in,first-out costing method is used?

Question

Rodriguez Inc.had the following balances and transactions during 2015:  What would the Ending Merchandise Inventory amount be as reported on the balance sheet at December 31,2015 if the perpetual first-in,first-out costing method is used?

Quizplus · Accepted Answer

Since perpetual first-in,first-out costing method is used, we need to assume that the ending inventory is made up of the most recent purchases. Therefore, the value of the ending inventory would be the cost of the most recent purchases, which is $8,200.