Question

please check my answer thanks :)

I messed up somewhere.:(

Using the FIFO method of inventory pricing, what is the dollaor value of ending inventory if there were 17,000 units on hand on Dec 31 Must show all of work

Jan 1 5,ooo @ $0.89 = 4450
Feb 15 10,000 @$ 0.69 = 6900
Apr 15 2,000 @$1.09 = 2180
July 15 4,000 @$0.99 = 3960
Oct 15 1,000 @$1.19 = 1190
Dec 15 2,000 @ $1.09 = 2180
+------------
20860

I keep messing up could someone please tell me what I am doing wrong thanks in advance :)

Answer 1

You only have 17,000 left in the store. The early months are gone - sold.

So start at Dec and work back until you get to 17,000

Dec 2,000 @ 1.09 = 2180
Oct 1,000 @ 1.19 = 1190
July 4,000@ 0.99 = 3960
April 2000@ 1.09 = 2180 that is 9000 units
Feb- 8,000@ 0.69 = 5520 that is 17000 units, the end