Question

The following lots of Commodity Z were available for sale during the year. Beginning inventory 9 units at $50 First purchase 16 units at $50 Second purchase 21 units at $59 Third purchase 16 units at $62 The firm uses the periodic system, and there are 23 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the FIFO method?

Answer 1

According to the FIFO method, the ending inventory balance for Commodity Z is $1,405

How much inventory is left under FIFO?

FIFO means that earlier inventory is sold first and later inventory would be the last goods left.

Since there were 23 units left, all 16 units from the last purchase and 7 units from the second purchase would be available:

= (16 x 62) + (7 x 59)

= 992 + 413

= $1,405

Find out more on the FIFO method at https://brainly.com/question/11493725.

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