Eversoll Inc.uses the periodic inventory system. If Eversoll uses the FIFO inventory method,the amount assigned to the June 30 inventory would be

Question

Eversoll Inc.uses the periodic inventory system.  If Eversoll uses the FIFO inventory method,the amount assigned to the June 30 inventory would be

Quizplus · Accepted Answer

Using the FIFO method, the cost of goods sold for June would be calculated as (15 units x $55) + (10 units x $56) = $1,365. The cost of the remaining 5 units in inventory would be calculated as 5 units x $56 = $280. Adding these together results in a total inventory value of $1,645. Subtracting the cost of goods sold from this total gives an inventory value of $1,645 - $1,365 = $280. Thus, the amount assigned to the June 30 inventory using the FIFO method would be $280 + $1,086.50 = $1,366.50.