The following lots of a Commodity P were available for sale during the year. Use this information to answer the questions that follow.

The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year.
-What is the year-end inventory balance using the FIFO method? Use the information provided in the table to answer this question
A) $1,380
B) $1,375
C) $1,510
D) $1,250

Question

The following lots of a Commodity P were available for sale during the year. Use this information to answer the questions that follow.
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The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year.
-What is the year-end inventory balance using the FIFO method? Use the information provided in the table to answer this question
A) $1,380 
B) $1,375 
C) $1,510 
D) $1,250

Quizplus · Accepted Answer

Ending inventory = 10 units at $74 from third purchase + 10 units at $77 from second purchase = $740 + $770 = $1,510

The Following Lots of a Commodity P Were Available for Sale