Question

Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows:Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31.The cost of the inventory at January 31, under the FIFO method isA : $3,285. B : $3,900. C : $4,015. D : $3,650.

Answer 1

Answer:

A : $3,285

Explanation:

On January 1, for Partridge Bookstore

Units held = 500 units

Cost of the units = $9

Total value = 500 × $9

                   =  $4,500

If there are 365 units were on hand at January 31, cost of the inventory at January 31, under the FIFO method

= $9 × 365

= $3,285

The right option is A : $3,285.