A company has beginning inventory of 15 units at a cost of $12 each on October 1. On October 5, it purchases 10 units at $13 per unit. On October 12 it purchases 20 units at $14 per unit. On October 15, it sells 30 units. Using the FIFO periodic inventory method, what is the value of the inventory at October 15 after the sale?
A) $380
B) $590
C) $140
D) $160
E) $210

Question

Quizplus · Accepted Answer

Using FIFO, the first 15 units sold are from the beginning inventory ($12 each), and the next 10 units are from the October 5 purchase ($13 each), and the remaining 5 units are from the October 12 purchase ($14 each). The remaining inventory is 15 units from the October 12 purchase at $14 each, totaling $210.

A Company Has Beginning Inventory of 15 Units at a Cost