Question

A corporation uses a FIFO perpetual inventory system. August 2, 25 units were purchased at $12 per unit. August 5, 10 units were purchased at $13 per unit. August 15, 12 units were sold at $25 per unit. August 18, 15 units were purchased at $14 per unit. What was the dollar amount of the ending inventory for the month of August?

Answer 1

Answer:

The dollar amount of the ending inventory for the month of August is $460

Explanation:

FIFO Perpetual chart is attached.

FIFO Perpetual chart shows purchases , sales and balance of each period.

The balance at the end of August is

Units Unit Cost Total

 10              12         $120,00

 10              13          $130,00

 15              14          $210,00

Total=$460

Units 35