Question

Sunland Company's inventory records show the following data: Units Unit Cost Inventory, January 1 11100 $8.00 Purchases: June 18 9500 8.40 November 8 6000 9.00 A physical inventory on December 31 shows 6000 units on hand. Under the FIFO method, the December 31 inventory is $50400. $54000. $50592. $48000.

Answer 1

$54,000

Step-by-step explanation:

Given that,

Inventory, January 1 = 11,100 units at $8.00 per unit

Purchases, June 18 = 9,500 units at $8.40 per unit

Purchases, November 8 = 6,000 units at $9.00 per unit

Physical inventory on December 31 (units on hand) = 6,000

Under the FIFO method,

December 31 inventory:

= Physical inventory on hand × Cost per unit at November 8

= 6,000 × $9.00 per unit

= $54,000