Mendez Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $15 each. During the month, the company made two purchases: 500 units at $14.50 each and 2,000 units at $14.00 each. Mendez Company also sold 2,150 units during the month.
Using the periodic FIFO method, what is the cost of ending inventory?
A) $21,700
B) $18,950
C) $20,073
D) $18,600

Question

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The Answer of Mendez Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $15 each. During the month, the company made two purchases: 500 units at $14.50 each and 2,000 units at $14.00 each. Mendez Company also sold 2,150 units during the month.
Using the periodic FIFO method, what is the cost of ending inventory?
A) $21,700
B) $18,950
C) $20,073
D) $18,600

Mendez Company Uses the Periodic Inventory System