The following information pertains to Julia & Company:
March 1 Beginning inventory $ =30 $ units $ @ \$ 5 $
March 3 Purchased 15 units @ \$4
March 9 Sold 25 units $ @ \$ 8 $
What's the ending balance of inventory for Julia & Company assuming that it uses FIFO?

Question

The following information pertains to Julia & Company: 
March 1 Beginning inventory $ =30 $ units $ @ \$ 5 $
March 3 Purchased 15 units @ \$4
March 9 Sold 25 units $ @ \$ 8 $
What's the ending balance of inventory for Julia & Company assuming that it uses FIFO?

Quizplus · Accepted Answer

Under FIFO (First-In, First-Out), the oldest inventory costs are used up first. Julia & Company sold 25 units, so 30 units from the beginning inventory are reduced by 25, leaving 5 units at $5 each. Additionally, 15 units were purchased at $4 each. Therefore, the ending inventory is 5 units @ $5 + 15 units @ $4 = $25 + $60 = $85.

The Following Information Pertains to Julia & Company: March =30 =30 =30

The Following Information Pertains to Julia & Company:
March $=30$