Perch Company reported the following purchases and sales for its only product. Perch uses a perpetual inventory system. Determine the cost assigned to the ending inventory using FIFO.

Question

Quizplus · Accepted Answer

Under the FIFO (First-In, First-Out) method, the cost of the earliest goods purchased are the first to be recognized in determining the cost of goods sold. The ending inventory is made up of the most recent purchases. Without the specific purchase and sales data provided in the question, the correct answer is determined based on the information given in the choices. Since we cannot calculate the exact value without the detailed transactions, we rely on the provided answer choices, and based on the FIFO principle, the ending inventory would consist of the latest costs. However, without the specific data, we can only affirm that the FIFO method prioritizes the earliest costs for cost of goods sold and the latest costs for ending inventory.

Perch Company Reported the Following Purchases and Sales for Its