Question

What is the cost of Windsor, Inc.'s ending inventory on July 30, 2023, using the FIFO (First-In, First-Out) inventory method? The most recent purchase was on July 10, 2023, when 25 units were acquired at $20 each. There are currently 43 units on hand.

Answer 1

The cost of Windsor, Inc.'s ending inventory on July 30, 2023, using the FIFO method is $500.

Step-by-step explanation:

In order to calculate the cost of Windsor, Inc.'s ending inventory on July 30, 2023, using the FIFO method, we need to determine the cost of the units that were acquired first and are still on hand.

First, let's calculate the cost of the 43 units on hand. The most recent purchase was on July 10, 2023, when 25 units were acquired at $20 each. So, we have 25 units at $20 each, which gives us a cost of $500.

Next, we need to determine the cost of the remaining units. Since the FIFO method assumes that the first items purchased are the first ones sold, we treat the 43 units on hand as if they were acquired first. Therefore, the cost of the remaining units will be the same as the 43 units on hand, which is $500.

Therefore, the cost of Windsor, Inc.'s ending inventory using the FIFO method on July 30, 2023, is $500.