Acme-Jones Corporation uses a FIFO perpetual inventory system.
August 2,25 units were purchased at $12 per unit.
August 5,10 units were purchased at $13 per unit
August 15,12 units were sold at $25 per unit.
August 18,15 units were purchased at $14 per unit.
What was the amount of the ending inventory for the month of August?
A)$496.00
B)$486.00
C)$492.57
D)$300.00
E)$510.00

Question

Quizplus · Accepted Answer

The ending inventory consists of the remaining units after the sale on August 15. Initially, 25 units at $12 and 10 units at $13 were purchased. After selling 12 units, 23 units remain (25 + 10 - 12). The remaining inventory is 13 units at $12 and 10 units at $13. The cost is (13 * $12) + (10 * $13) = $496.

Acme-Jones Corporation Uses a FIFO Perpetual Inventory System