Question

The inventory records for Radford Co. reflected the following:

Beginning inventory @ May 1 2,000 units @ $5.60

First purchase @ May 7 2,100 units @ $5.80

Second purchase @ May 17 2,300 units @ $5.90

Third purchase @ May 23 1,900 units @ $6.00

Sales @ May 31 6,300 units @ $7.50

What is the amount of ending inventory assuming the FIFO cost flow method?

Answer 1

Ending inventory in units = Units available - Units sold Ending inventory in units = 2,000+2,100+2,300+1,900 - 6,300 = 2,000 units Amount of ending inventory = (1,900 x $6) + (100 x $5.90) Amount of ending inventory = $11,990 Answer: $11,990