question archive anfillipo, Inc

anfillipo, Inc

Subject:FinancePrice:2.84 Bought7

anfillipo, Inc., had 800 units of inventory on hand at March 1 of the current year, costing $20 each. Purchases and sales of inventory during the month of March were as follows:

 

Date Purchases Sales

 

March 8  600 units

15 400 units @ $22 each  

22 400 units @ $24 each  

27  400 units

 

Sanfillipo uses the periodic inventory system. According to a physical count, 600 units were on hand at the end of March.

 

The cost of inventory at the end of March applying the FIFO method is:

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Cost of inventory as per FIFO method = $14,000

Step-by-step explanation

The calculation is shown below:

Cost of inventory as per FIFO method = (400 Units from March 22 * Price on March 22) + ((600-400) Units from March 15 * Price on March 15)

= (400 units * $24) + (200 units * $22)

= $9,600 + $4,400

= $14,000 

 

Cost of inventory as per FIFO method = $14,000