Question

19. Storme Shutters has the following inventory information. Nov. 1 Inventory 30 units @$8.00 8 Purchase 120 units @$8.30 17 Purchase 60 units @$8.70 25 Purchase 90 units @$8.80 A physical count of merchandise inventory on November 30 reveals that there are 80 units on hand. Assume a periodic inventory system is used. Ending inventory under FIFO is

Answer 1

Correct Answer:

Ending Inventory

80

units

$          704.00

Working:

Cost of Goods Available for sale
		Units	Cost per unit	value
Beginning Inventory	01-Nov	30	$                       8.00	$                       240.00
Purchases	08-Nov	120	$                       8.30	$                       996.00
Purchases	17-Nov	60	$                       8.70	$                       522.00
Purchases Return	25-Nov	90	$                       8.80	$                       792.00
Total		300		$                   2,550.00

	FIFO
A	Total Units Available for sale			300		$      2,550.00
	Units Sold			220
	Ending Inventory Units			80
	Valuation
	Cost of Goods Sold		30		$                           8.00	$          240.00
			120		$                           8.30	$          996.00
			60		$                           8.70	$          522.00
			10		$                           8.80	$            88.00
						$                   -
						$                   -
B	Cost of Goods Sold		220	units		$      1,846.00
A-B	Ending Inventory		80	units		$          704.00

End of answer.

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