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
