Question

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0.058 Dupont Ltd uses a periodic inventory system has the following Beginning Inventory Purchase Purchase Date July 1 10 20 Units 8,000 13,000 5,000 Unit Cost $11 12 13 if 9,000 units are on hand as at the end of July the cost of the ending inventory under First-In-First-Out (FIFO) method is Select one: a $ 100,000 b. $108,000 $113,000 d. $117.000

Answer 1

Requirement 1 (Question 1):-

Under the First In First Out (FIFO) method of accounting, the goods that are bought first will be the ones that are sold first. Hence, out of all the inventory purchases , since 9,000 units remain at the end of the month, 5,000 units of the inventory Purchased on July 20 and 4,000 units of the inventory purchased on July 10 will remain.

As such, we can calculate the ending value of inventory as follows:-

July 20 Inventory = 5,000 units * $13 per unit = $65,000

July 10 Inventory = 4,000 units * $12 per unit = $48,000

Ending value of inventory = $113,000

Based on the information and calculation above, the correct answer is Option C - $113,000.

Option A, Option B and Option D are incorrect per the calculation above.

Kindly note that i have answered the first question per the HOMEWORKLIB RULESs. Request you to post the remaining question separately so that we can answer them as well. All the best and please let me know if you have any questions via the comments section .