Clear Clarinets has the following inventory data: $$\begin{array} { r l l }
\text { July } 1 & \text { Beginning inventory } & 50 \text { units at } \$ 120 \
5 & \text { Purchases } & 300 \text { units at } \$ 112 \
14 & \text { Sale } & 200 \text { units } \
21 & \text { Purchases } & 150 \text { units at } \$ 115 \
30 & \text { Sale } & 140 \text { units }
\end{array}$$ Assuming that a periodic inventory system is used what is the amount allocated to ending inventory on a FIFO basis?
A)$18220
B)$18370
C)$38480
D)$38530

Question

Clear Clarinets has the following inventory data: $$\begin{array} { r l l } 
\text { July } 1 & \text { Beginning inventory } & 50 \text { units at } \$ 120 \
5 & \text { Purchases } & 300 \text { units at } \$ 112 \
14 & \text { Sale } & 200 \text { units } \
21 & \text { Purchases } & 150 \text { units at } \$ 115 \
30 & \text { Sale } & 140 \text { units }
\end{array}$$ Assuming that a periodic inventory system is used what is the amount allocated to ending inventory on a FIFO basis?
A)$18220
B)$18370
C)$38480
D)$38530

Quizplus · Accepted Answer

Under FIFO, the ending inventory consists of the most recent purchases. After the sales, 160 units remain: 150 units from July 21 at $115 each and 10 units from July 5 at $112 each. The calculation is (150 units * $115) + (10 units * $112) = $17,250 + $1,120 = $18,370.

Clear Clarinets Has the Following Inventory Data Assuming That a Periodic Inventory System Is Used What Is