Chase Co.uses the perpetual inventory method.The inventory records for Chase reflected the following information:

-Assuming Chase uses a FIFO cost flow method,what is the ending inventory on January 31?
A)$345
B)$340
C)$330
D)$1,020

Question

Chase Co.uses the perpetual inventory method.The inventory records for Chase reflected the following information:
 
-Assuming Chase uses a FIFO cost flow method,what is the ending inventory on January 31?
A)$345 
B)$340 
C)$330 
D)$1,020

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 = (50 × $2.40)+ (100 × $2.20)= $340

Chase CoUses the Perpetual Inventory Method