At year-end, the perpetual inventory records of Anderson Co. indicate 60 units o

Question

At year-end, the perpetual inventory records of Anderson Co. indicate 60 units of a particular product in inventory, acquired at the following dates and unit costs:

Purchased in August: 30 units at $750 per unit.
Purchased in November: 30 units at $700 per unit.
A complete physical inventory taken at year-end indicates only 50 units of this product actually are on hand.

Refer to the information above. Under the FIFO cost flow assumption, the cost of these items to be included in inventory in the company's year-end balance sheet is:

Explanation / Answer

Calculate ending inventory value under FIFO method :

Ending inventory under FIFO = (30*700+20*750) = 36000

so answer is a) 36000

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