Beginning inventory, purchases, and sales for an inventory item are as follows: Beginning inventory 150 units @ $755 Sale 120 units First purchase 400 units @ $785 Sale 200 units Second purchase 300 units (@ $805 Sale 290 units The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year. What is the total cost of ending inventory according to FIFO? O 193200 O 187700 O 190000 O 180000
Beginning inventory, purchases, and sales for an inventory item are as follows: Beginning inventory 150 units @ $755 Sale 120 units First purchase 400 units @ $785 Sale 200 units Second purchase 300 units (@ $805 Sale 290 units The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year. What is the total cost of ending inventory according to FIFO? O 193200 O 187700 O 190000 O 180000
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Inventories
Section: Chapter Questions
Problem 6.7EX: FIFO and UFO costs under perpetual inventory system The following units of an item were available...
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Step 1
The inventory card is prepared in the next step using the FIFO method.
Under the FIFO method, goods that are purchased first are sold first.
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