The following hammers were available for sale during the year for Felicity Tools:
Felicity has 30 hammers on hand at the end of the year. What is the dollar amount of inventory at the end of the year according to the first-in, first-out method?
A) $5,100
B) $5,950
C) $7,900
D) $7,800

Question

The following hammers were available for sale during the year for Felicity Tools:
 Felicity has 30 hammers on hand at the end of the year. What is the dollar amount of inventory at the end of the year according to the first-in, first-out method?
A) $5,100 
B) $5,950 
C) $7,900 
D) $7,800

Quizplus · Accepted Answer

The ending inventory is made up of 25 units in the third purchase plus 5 units in the second purchase. (25 × $260) + (5 × $280) = $7,900

The Following Hammers Were Available for Sale During the Year