Question

Jacobs Company has inventory of 15 units at a cost of $12 each on June 1. On June 5, Jacobs purchased 10 units at $13 per unit. On June 12, it purchased 20 units at $14 per unit. On June 17, it sold 30 units. Using FIFO, what is the value of the inventory at June 17 after the sale

Answer 1

Answer:

The value of the inventory on hand is $210

Explanation:

Inventory on hand / purchased;

June 1 - 15 units at $12

June 5 - 10 units at $13

June 12 - 20 units at $14

total units on hand = 45 units

Sale - 30 units sold

units left on hand 15.

Since there are only 15 units left on hand, and the $12 and $13 inventory units have all been sold since they were in first before the inventory purchased on June 12 the value of the inventory on hand is 15 x $14 = $210.

Answer 2

Answer:

$210

Explanation:

Given that

15 units cost $12 each = $180

10 units costs $13 each = $130

5 units cost $14 each = $70

Thus using FIFO which is first in, first out

Value of inventory sold = 180 + 130 + 70

= $380.

15 units are left costing $14 each

Therefore,

Value of inventory after sale

= 15 × 14

= $210