Venus Wholesale Co. started carrying a new product in December. Purchases and sales of this product during the month were:
$\begin{array} { | l | l | }
\hline 20 \mathrm { Dec } & \text { Purchased } 100 \text { units at } \$ 80 \text { per unit } \
\hline 26 \mathrm { Dec } & \text { Sold } 80 \text { units } \
\hline 28 \mathrm { Dec } & \text { Purchased } 100 \text { units at } \$ 90 \text { per unit } \
\hline
\end{array}$

-At year-end, Venus restates the carrying value of its inventory using periodic FIFO costing procedures. Under periodic costing procedures, the FIFO cost of the inventory is:

Question

Venus Wholesale Co. started carrying a new product in December. Purchases and sales of this product during the month were:
$\begin{array} { | l | l | } 
\hline 20 \mathrm { Dec } & \text { Purchased } 100 \text { units at } \$ 80 \text { per unit } \
\hline 26 \mathrm { Dec } & \text { Sold } 80 \text { units } \
\hline 28 \mathrm { Dec } & \text { Purchased } 100 \text { units at } \$ 90 \text { per unit } \
\hline
\end{array}$

-At year-end, Venus restates the carrying value of its inventory using periodic FIFO costing procedures. Under periodic costing procedures, the FIFO cost of the inventory is:

Quizplus · Accepted Answer

Since Venus uses the FIFO method, the cost of the units sold will be the cost of the oldest (first) units in inventory. Therefore, the cost of the remaining inventory will be based on the cost of the most recent (last) units purchased. Using periodic FIFO costing, the ending inventory will be valued at the cost of the most recent units, which is $10,600.

Venus Wholesale Co -At Year-End, Venus Restates the Carrying Value of Its Inventory