Amy is the owner of The Candle Shop she uses the FIFO method for inventory pricing, what is the dollar value of the ending inventory if there were 17,000 units on hand Dec 31

Question

ok this is what I have so
Jan 1 5,000 @ $0.89
Feb15 10,000 @ $0 69
April 15 2,000 @$1.09
July 15 4,000 $0.99
Oct 15 1,000 1.19
Dec 15 2,000 $1.09

5,000 x $0.89 = 4450
10,000 x $0.69 = 6900
2,000 x $1.09 = 2180
4,000 x $0.99 = 3960
1,000 x $1.19 = 1190
2,000 x $1.09 = 2180
________________
+-------
20860

I am not sure what I do from here thanks for your help

Answer 1

IF it is FIFO, then the older units go first. You should be totaling the value of units, starting with the most recent working back, until you get a total of 17000 units on hand. The first 5000 units are gone, and of the next 10000, only 8000 are on hand. Check my counting.

Answer 2

8000 x .69+ 2000 x 1.09 + 4000 x .99 + 1000 x 1.19 + 2000 x 1.09 =

8000 x .69 = 5520 + 2000 =7520
7520 x 1.09 = 8196.80
8196.80 + 4000 = 12196.80
12196.80 x.99 =

am I doing this right so farI need to show all of my work

Answer 3

I am trying to help a friend and I understand the first part but I am really confused about what to do next!!

This is what I have so far

10,000 x $0.69 = 6900
2,000 x $1.09 = 2180
4,000 x $0.99 = 3960
1,000 x $1.19 = 1190
2,000 x $1.09 = 2180

10,000
2,000
4,000
1,000
2,000
=
19,000

how do I figure out the dollar value of ending inventory if there were 17,000 units on hand on December 31?

This is where I really start having a problem. Can you please explain what I need to do next??

Thanks!!