Answered

Looking for answers? Westonci.ca is your go-to Q&A platform, offering quick, trustworthy responses from a community of experts. Discover comprehensive answers to your questions from knowledgeable professionals on our user-friendly platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

"Easton Company uses 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 130 $11 5/5 Purchase 280 $13 5/15 Purchase 140 $15 5/25 Purchase 160 $17 Sales were 430 units at $25. Using the FIFO method, determine the dollar value of Ending Inventory for the month of May.”

Sagot :

Answer:

$4,520

Explanation:

The computation of the dollar value of the ending inventory using the FIFO method is as follows:

But before that the ending inventory is

= Beginning inventory + purchased units + purchased units + purchased units - sales units

= 130 units + 280 units + 140 units + 160 units - 430 units

= 280 units

Now the ending inventory is

= 160 units × $17 + (280 units - 160 units) × $15

= $2,720 + $1,800

= $4,520

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.