Blueberry Ltd uses the FIFO assumption with the periodic inventory method.
$\begin{array}{lrrr}
& \text { Units } & \text { Unit Cost } \$ & \text { Total Cost } \$ \
\text { Beginning Inventory } & 8 & 12 & 96 \
\text { Purchases } & 15 & 14 & 210 \
\text { Purchases } & 23 & 15 & 345
\end{array}$
Sales during year were 18 units. The value of closing stock at the end of the period is:

Question

Blueberry Ltd uses the FIFO assumption with the periodic inventory method.
$\begin{array}{lrrr} 
& \text { Units } & \text { Unit Cost } \$ & \text { Total Cost } \$ \
\text { Beginning Inventory } & 8 & 12 & 96 \
\text { Purchases } & 15 & 14 & 210 \
\text { Purchases } & 23 & 15 & 345
\end{array}$
Sales during year were 18 units. The value of closing stock at the end of the period is:

Quizplus · Accepted Answer

Under FIFO, the oldest costs are assigned to the cost of goods sold. After selling 18 units, 8 units from the beginning inventory and 10 units from the first purchase are sold. The closing stock is 28 units (15 from the first purchase and 13 from the second purchase), valued at (5 units x $14) + (23 units x $15) = $415.

Blueberry Ltd Uses the FIFO Assumption with the Periodic Inventory