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The following lots of a particular commodity were available for sale during the year (CHART IS MISSING)During a period of consistently rising prices, the method of inventory that will result in reporting the

greatest cost of merchandise sold is The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the first-in, first-out method?

User Tomups
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Final answer:

The value of inventory at the end of the year using FIFO cannot be calculated without the prices and dates of the lots purchased. FIFO would typically use the most recent purchase prices to value the ending inventory with rising prices.

Step-by-step explanation:

The question refers to the calculation of inventory value at the end of the year using the first-in, first-out (FIFO) method under a periodic inventory system. With FIFO, during a period of consistently rising prices, the ending inventory consists of the units bought last at the higher prices. To calculate the inventory value at year-end, we would need to know the individual lot prices for the units, but since the chart is missing, we can't determine an exact number. The inventory valuation under FIFO would take the costs of the most recent purchases and multiply those by the remaining quantity of inventory to determine the value of ending inventory.

User Renish Khunt
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