Question

On December 31, 2022, Schonfeld Corporation's ending inventory under the FIFO method is:

a. ( $ 0 )
b. ( $ 2,000 )
c. ( $ 4,000 )
d. ( $ 6,000 )

Answer 1

The ending inventory under the FIFO method for Schonfeld Corporation on December 31, 2022, is ($6,000).

Step-by-step explanation:

The FIFO (First-In, First-Out) method is an inventory valuation method in accounting. Under this method, the cost of goods sold and the ending inventory are calculated based on the assumption that the items that were purchased first are the first ones to be sold.

Given that the question asks about the ending inventory, we need to determine the cost of the remaining inventory on December 31, 2022. Since there is no information provided about any purchases or sales after this date, we can assume that the remaining inventory would be the same as the cost of the most recent purchases. Therefore, the ending inventory under the FIFO method would be ($6,000) as the answer choice (d).