A company has beginning inventory of 44 units at a cost of $12.00 each on October 1. On October 5, it purchases 28 units at $13.00 per unit. On October 12 it purchases 38 units at $14.00 per unit. On October 15, it sells 84 units. Using the periodic FIFO inventory method, what is the value of the inventory at October 15 after the sale?

Question

Daniel Liu

Business

31 March, 20:06

A company has beginning inventory of 44 units at a cost of $12.00 each on October 1. On October 5, it purchases 28 units at $13.00 per unit. On October 12 it purchases 38 units at $14.00 per unit. On October 15, it sells 84 units. Using the periodic FIFO inventory method, what is the value of the inventory at October 15 after the sale?

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Answers (1)

Know the Answer?

Levi Martin · Answer 1

The answer is: $364

Explanation:

The inventory records are as follows:

Oct 1 beginning inventory: 44 units at $12 per unit Oct 5 purchased merchandise: 28 units at $13 per unit Oct 12 purchased merchandise: 38 units at $14 per unit Oct 15 sold merchandise: 84 units sold

Using the first in, first out periodic inventory method, the merchandise inventory at Oct 15 is: 26 units at $14 per unit = $364.

The COGS is (44 x $12) + (28 x $13) + (12 x $14) = $1,060