Use this information to answer the following question. $\begin{array}{ll}
\text { Beginning inventory } & 100 \text { units @\$8.00 } \
\text { Purchase-Oct. } & 200 \text { units } @ \$ 6.00 \
\text { Purchase-Dec. } & 100 \text { units } @ \$ 12.00
\end{array}$
A periodic inventory system is used; ending inventory is 151 units.
What is ending inventory under FIFO?

Question

Use this information to answer the following question. $\begin{array}{ll}
\text { Beginning inventory } & 100 \text { units @\$8.00 } \
\text { Purchase-Oct. } & 200 \text { units } @ \$ 6.00 \
\text { Purchase-Dec. } & 100 \text { units } @ \$ 12.00
\end{array}$
 A periodic inventory system is used; ending inventory is 151 units.
What is ending inventory under FIFO?

Quizplus · Accepted Answer

The question does not provide any information about the cost of inventory or the prices of items. Therefore, we cannot calculate the actual dollar value of ending inventory. However, the question only asks for the ending inventory under FIFO method, which means we assume that the first items purchased are also the first items sold. In this case, the ending inventory value will be the same as the most recent purchase, which is the 151 units. Therefore, the answer is D, $1,506.

Use This Information to Answer the Following Question A Periodic Inventory System Is Used; Ending Inventory Is 151