Question

The following units of an inventory item were available for sale during the year:

Beginning inventory	7 units at $51
First purchase	17 units at $52
Second purchase	23 units at $57
Third purchase	17 units at $59

The firm uses the periodic inventory system. During the year, 37 units of the item were sold.

The value of ending inventory using FIFO is

Answer 1

Ending inventory = Units available - Units sold = (7+17+23+17) - 37 = 27 units Cost of ending inventory under Fifo = (17*59) + (27-17)*57 = 1573