Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:
$\begin{array} { | l | c | c | c | }
\hline & \text { Quantity } & \text { Unit Cost (\$) } & \text { Total Cost (\$) } \
\hline \text { Beginning inventory (1 Jan) } & 16 & 10 & 160 \
\hline \text { Purchases (11 Jan.) } & 14 & 12 & 168 \
\hline \text { Purchase (20 Jan.) } & 23 & 15 & \underline { 345 } \
\hline \text { Total } & 53 & & 673 \
\hline
\end{array}$
On 14 January, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at 31 January.

-Assuming that Beech Soda uses the FIFO flow assumption, the 28 units of this product in inventory at 31 January have a total cost of:

Question

Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:
$\begin{array} { | l | c | c | c | } 
\hline & \text { Quantity } & \text { Unit Cost (\$) } & \text { Total Cost (\$) } \
\hline \text { Beginning inventory (1 Jan) } & 16 & 10 & 160 \
\hline \text { Purchases (11 Jan.) } & 14 & 12 & 168 \
\hline \text { Purchase (20 Jan.) } & 23 & 15 & \underline { 345 } \
\hline \text { Total } & 53 & & 673 \
\hline
\end{array}$
On 14 January, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at 31 January.

-Assuming that Beech Soda uses the FIFO flow assumption, the 28 units of this product in inventory at 31 January have a total cost of:

Quizplus · Accepted Answer

Under FIFO, the oldest costs are assigned to the cost of goods sold first. The remaining inventory consists of the most recent purchases. The 28 units in inventory at the end of January would include 14 units from the 11 Jan purchase at $12 each and 14 units from the 20 Jan purchase at $15 each, totaling $405.

Beech Soda, Inc On 14 January, Beech Soda, Inc