During the past year, a Plumbing Supply house sold 503 faucets. Inventory record

Question

During the past year, a Plumbing Supply house sold 503 faucets. Inventory records for the year are Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory. a. $3, 324.00 b. $4, 116.75 c. $3, 815.50 d. $3, 834.50 During the past year, Kool Kats Inc. sold 829 pet bandanas. Inventory records for the year are as follows: Using the UFO method of inventory pricing, calculate the dollar value of the ending inventory. a. $13, 944.00 b. $10, 831.00 c. $15, 294.00 d. $19, 356.00

Explanation / Answer

1) The First-in, First-out Method (FIFO) ... The first in, first out (FIFO) method of inventory valuation is a cost flow assumption that the first goods purchased are also the first goods sold.

503 products are sold. First purchased will be sold first.

1

Total 272

$7373.25

Units Available for Sale = 28 + 74 + 150 + 250 + 500 = 1002 Units Sold = 503 Units in Ending Inventory = 1002 503 = 499 Cost of Goods Sold Units Unit Cost Total Sales From Jan 15 Inventory 28 $11.25 $315 Sales From Mar 22 Purchase 74 $12.50 $925 Sales From April 24 Purchase 150 $20.00 $3000 Sales From October 10 Purchase 250 $12.50 $3125 Sales From December 31 Purchase

1

Total 272

$8.25 $8.25

$7373.25

Ending Inventory Units Unit Cost Total Inventory From December 31 Purchase 499 $8.25 $4116.75

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