Question

AAA Co. uses a periodic inventory system and has the following information in regard to its inventory: There are 800 units in ending inventory. What is the amount of the ending inventory using the FIFO method

Answer 1

Answer:

$13,350

Explanation:

Calculation for Ending inventory using the FIFO method

ENDING INVENTORY

Purchase on October 2 (550 units *17) $9,350

Add Purchase on March 15 (250 units*16) $4,000

Ending inventory $13,350

($9,350+$4,000)

Note: Purchase on October2 550 units -800 units in ending inventory=250 units

Therefore the Ending inventory using the FIFO method will be $13,350

Answer 2

AAA Co. uses a periodic inventory system. The amount of the ending inventory using the FIFO method is $13,350.

What is FIFO method?

FIFO stands for "First In, First Out". It means that if a certain number of people enters a place in a queue, then those people will exit the place in the same order.

Calculation for Ending inventory using the FIFO method:-

Purchase on October 2 (550 units *17) $9,350

Add Purchase on March 15 (250 units*16) $4,000

Ending inventory $13,350 ($9,350+$4,000)

Working Note:- Purchase on October2 550 units -800 units in ending inventory=250 units

Hence, the Ending inventory using the FIFO method will be $13,350.

Learn more about FIFO method, refer to the link:

https://brainly.com/question/10239225