The inventory records for Radford Co.reflected the following:

-What is the amount of ending inventory assuming the FIFO cost flow method?
A)$480
B)$440
C)$400
D)$940

Question

The inventory records for Radford Co.reflected the following:
 
-What is the amount of ending inventory assuming the FIFO cost flow method?
A)$480 
B)$440 
C)$400 
D)$940

Quizplus · Accepted Answer

The first-in,first-out (FIFO)cost flow method requires that the cost of the items purchased first be assigned to cost of goods sold.
Ending inventory units = 1,000 units available for sale - 900 units sold = 100 units in ending inventory
Ending inventory = 100 units × $4.80 per unit = $480

The Inventory Records for Radford Co.reflected the Following