Question

QUESTION 9 The following data represent the beginning inventory and, in the order of occurrence, the purchases and sales of Mulligan Company for an operating period. Units Unit Cost Total Cost Units Sold Beginning Inventory $58 $1,160 Purchase No. 1 1,240 Sale No. 1 Purchase No.2 5,760 Sale No. 2 Purchase No. 3 5,040 Totals 200 $13,200 62 72 110 Assuming Mulligan Company uses FIFO periodic inventory procedures, the ending inventory cost is: A. $5,040 B. $6,480 O C. $5,600 D. $6,320

Answer 1

Correct Answer:

Option D: $ 6,320

Working:

	FIFO
A	Total Units Available for sale			200		$                       13,200.00
	Units Sold			110
	Ending Inventory Units			90
	Valuation
	Cost of Goods Sold		20		$                         58.00	$                         1,160.00
			20		$                         62.00	$                         1,240.00
			70		$                         64.00	$                         4,480.00
B	Cost of Goods Sold		110	units		$                         6,880.00
A-B	Ending Inventory		90	units		$                         6,320.00

End of answer.

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