Mosher,Inc.had the following balances and transactions during 2017: $$\begin{array} { | l | l | }
\hline \text { Beginning Merchandise Inventory as of January 1,2017 } & 100 \text { units at } \$ 82 \
\hline \text { March } 10 & \text { Sold } 70 \text { units } \
\hline \text { Iune } 10 & \text { Purchased } 200 \text { units at } \$ 85 \
\hline \text { October } 30 & \text { Sold } 170 \text { units } \
\hline
\end{array}$$ What would be reported for Ending Merchandise Inventory on the balance sheet at December 31,2017 if the perpetual inventory system and the first-in,first-out inventory costing method are used?

Question

Mosher,Inc.had the following balances and transactions during 2017: $$\begin{array} { | l | l | } 
\hline \text { Beginning Merchandise Inventory as of January 1,2017 } & 100 \text { units at } \$ 82 \
\hline \text { March } 10 & \text { Sold } 70 \text { units } \
\hline \text { Iune } 10 & \text { Purchased } 200 \text { units at } \$ 85 \
\hline \text { October } 30 & \text { Sold } 170 \text { units } \
\hline
\end{array}$$ What would be reported for Ending Merchandise Inventory on the balance sheet at December 31,2017 if the perpetual inventory system and the first-in,first-out inventory costing method are used?

Quizplus · Accepted Answer

Under FIFO, the oldest inventory costs are used up first. After selling 70 units from the beginning inventory, 30 units remain at $82. After purchasing 200 units at $85, 170 units are sold, leaving 30 units at $82 and 30 units at $85. The ending inventory is (30 x $82) + (30 x $85) = $5,100.

Mosher,Inc What Would Be Reported for Ending Merchandise Inventory on the |