The Candle Shop -Annual Inventory of candles.

Question

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Jan 1 Beg Inventory 5,000 units @$0.89
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Feb 15 Purchase 10,000 units @ $0.69
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April purchase 2,000 units @ $1.09
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July 15 purchase 4,000 units @ $ 0.99
________________________________________Oct 15 purchase 1,000 units @$1.19
________________________________________Dec 15 purchase 2,000 units @$1.09
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Using the FIFO method of inventory pricing, what is the dollar value of ending inventory if there were 17,000 units on hand on Dec 31?
Someone please help this is very tough question I have know idea if you could show all your work and explian it to me thanks for your time

Answer 1

The total number of units purchased was 24,000. Since there were 17,000 sold by Dec. 31, 7,000 were sold.
With FIFO (First In, First Out) accounting, the 7000 units sold would be the first 7000 bought, which would be 5000 at 0.89 and 2000 at 0.69 per unit. That cost would be $5830.
Subtract that amount from the total amount spent for inventory and you will have the dollar value of remainign inventory.