Question

ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units @ $9 cost per unit Purchased 2,000 units @ $12 cost per unit Sold 3,000 units Purchased 4,000 units @ $8 cost per unit Sold 2,100 units Purchased 2,500 units @ $6 cost per unit Sold 2,200 units Purchased 2,300 units @ $17 cost per unit ABC Company reported operating expenses of $26,100 for May and they had a tax rate of 43%. Calculate the dollar amount of ending inventory shown on ABC Company's May 31 balance sheet using the FIFO method.

Answer 1

	Units	Rate	Amount
Balance from May 30th purchase	2300	$   17	$   39,100
Balance from May 21st purchase	2500	$     6	$   15,000
Balance from May 13th purchase	2900	$     8	$   23,200
Ending inventory	7700		$   77,300

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