Klump Co. Klump Co.uses a perpetual inventory system and had the following inventory transactions for the month of June.

-Refer to the information provided for Klump Co.If the company uses the FIFO inventory costing method,the amount of ending inventory reported on the balance sheet is:

Question

Klump Co. Klump Co.uses a perpetual inventory system and had the following inventory transactions for the month of June.

-Refer to the information provided for Klump Co.If the company uses the FIFO inventory costing method,the amount of ending inventory reported on the balance sheet is:

Quizplus · Accepted Answer

Using the FIFO inventory costing method, we assume that the first items purchased are the first items sold, leaving the most recent purchases in inventory. Therefore, the ending inventory would consist of the 10 units purchased on June 15 for $190, and the 5 units purchased on June 27 for $100. This gives us an ending inventory value of $1,823.75 (10 units x $19.25 + 5 units x $20).

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