Question

8. EX.07-168

Beginning inventory, purchases, and sales for an inventory item are
Beginning inventory 150 units @ $755
Sale
120 units
First purchase 400 units @ $785
Sale
200 units
Second purchase 300 units @ $805
Sale
290 units
8
The firm uses the perpetual inventory system and there are 240 ur
What is the total cost of ending inventory according to FIFO?​

Answer 1

The cost of ending inventory = $193,200.

Step-by-step explanation:

First in First out (FIFO) inventory system refers to the system where the materials are issued when they have purchased in an orderly manner. See image below to get your answer with illustration.