Question

Assume Jones Manufacturing begins March with 20 units of inventory that cost $15 each. During March, the following purchases and goods sold were: March 15 Purchased 25 units at $18 30 Sold 30 units Using the FIFO inventory costing method and the perpetual system, what is the ending Merchandise Inventory on March 30?

Answer 1

$270

Step-by-step explanation:

The computation of the ending inventory using the FIFO method is shown below:

But first we have to determine the ending inventory units which is shown below:

= Beginning units + purchased units - sale units

= 20 units + 25 units - 30 units

= 15 units

Now the ending inventory is

= 15 units × $18

= $270

Hence, the ending inventory is $270