Klump Co. Klump Co. uses a perpetual inventory system and had the following inve

Question

Klump Co.
Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June.

Refer to the information provided for Klump Co. If the company uses the FIFO inventory costing method, the amount of ending inventory reported on the balance sheet is:

$1,823.75

$1,825.00

$1,800.00

$1,810.00

June 1 On hand, 50 units at $18.00 each $ 900.00 4 Purchased 115 units at $18.20 each 2,093.00 5                Sold 100 units 10 Purchased 75 units at $18.25 each 1,368.75 24                Sold 50 units Total cost of goods available for sale $4,361.75 30 On hand, 100 units

Explanation / Answer

Calculate ending inventory under FIFO perpetual method :

ENding inventory = (75*18.25+25*18.20) = 1823.75

so answer is a) $1823.75

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