Question

Jacobs Company has inventory of 15 units at a cost of $12 each on June 1. On June 5, Jacobs purchased 10 units at $13 per unit. On June 12, it purchased 20 units at $14 per unit. On June 17, it sold 30 units. Using FIFO, what is the value of the inventory at June 17 after the sale? $140 $160 $210 $380

Answer 1

$210

Step-by-step explanation:

Date Description Units Price Total Balance

1-Jun Opening 15 $12 $180 $180

5-Jun Purchase 10 $13 $130 $310

12-Jun Purchase 20 $14 $280 $590

17-Jun *Sale -30 -$380 $210

*Working

Sale

Date Units Price Total

17-Jun -15 $12 $(180)

-10 $13 $(130)

-5 $14 $(70)

Total Sale -30 -$380

So, the correct answer is $210.