1. The Benchley Company uses metal grates when assembling appliances. Informatio
ID: 2331320 • Letter: 1
Question
1. The Benchley Company uses metal grates when assembling appliances. Information as to balances on hand, and requisitions of the grates is given in the following table. Transaction Number of Balance of Units Date 150 450 120 210 225 195 165 225 210 $2.80 $3.10 Jan. 1 Beginning balance Jan. 24 Purchased Feb. 8 Mar. 16 Issued Jun. 11 Purchased Aug. 18 Issued Sep. 6Issued Oct. 15 Purchased Dec. 29Issued If a perpetual inventory record of the metal grates is maintained on a FIFO basis, what costs are assigned to the 150 units 150 600 480 270 495 300 135 360 150 Issued $3.24 $3.50 in ending inventory? a. 150 units $3.50 b. 15 units @ S3.50 and 135 units @ S3.24 c. 150 units @ $2.80. d. 15 units @ $3.50 and 135 units @ $2.80.Explanation / Answer
The answer is a. 150 units @ 3.5
FIFO Method means First In First Out i.e the Units which has come first will go out first.
Ending Inventory is 150 Units
Aplying the FIFO method the units purchased at the end of the period will be in Stock.
So, the units purchased on 15th Oct will be in Stock.
So Ending Inventory = 150 units @ 3.5 = $ 525
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