Respuesta :
Answer:
$30,600
Explanation:
Under FIFO method, units that are purchased first are sold first.
Given:
Beginning inventory = 9,200 units @$8
Purchases in June = 9,300 units @7.6
Purchases in November = 5,100 units @6
Closing inventory as on December 31 was 5,100 units.
Since the company follows FIFO method of inventory valuation, beginning and purchases made in June are sold first. Remaining 5,100 units purchased in November are not sold as they are left unsold at the time of closing.
So December 31 inventory is computed as 5,100 × 6 = $30,600
Answer:
FIFO method, December 31 inventory value is $30,600
Explanation:
Inventory, January 1 9,200 @ $8.00 = $73,600
Purchases: June 18 9300 @ $7.60 = $70680
November 8 5100 @ $6.00 = $30,600
there are 5100 unit on hand as per physical inventory till December 31
Using FIFO, the cost assigned to these units should be most recent cost, $6 per unit, from the November 8 purchase.
Under FIFO method, December 31 inventory value is
[tex]= 5100 unit \times $6 per unit = $30,600[/tex]
