A company's inventory records report the following:
$$\begin{array} { | l | l | l | }
\hline \text { August 1 } & \text { Beginning balance } & 15 \text { units @ \$12 } \
\hline \text { August 5 } & \text { Purchase } & 10 \text { units @ \$13 } \
\hline \text { August 12 } & \text { Purchase } & 20 \text { units @ \$14 } \
\hline
\end{array}$$
On August 15,it sold 30 units.Using the FIFO perpetual inventory method,what is the value of the inventory at August 15 after the sale?
A) $140
B) $160
C) $210
D) $380
E) $590

Question

A company's inventory records report the following:
$$\begin{array} { | l | l | l | } 
\hline \text { August 1 } & \text { Beginning balance } & 15 \text { units @ \$12 } \
\hline \text { August 5 } & \text { Purchase } & 10 \text { units @ \$13 } \
\hline \text { August 12 } & \text { Purchase } & 20 \text { units @ \$14 } \
\hline
\end{array}$$
On August 15,it sold 30 units.Using the FIFO perpetual inventory method,what is the value of the inventory at August 15 after the sale?
A) $140
B) $160
C) $210
D) $380
E) $590

Quizplus · Accepted Answer

Under FIFO, the oldest inventory costs are used first. The sale of 30 units would use 15 units @ $12 and 15 units @ $13, leaving 5 units @ $13 and 20 units @ $14 in inventory. The value is (5 units x $13) + (20 units x $14) = $65 + $280 = $345. However, the choices provided do not match this calculation, indicating a potential error in the options or question.

A Company's Inventory Records Report the Following On August 15,it Sold 30 Units