What is the amount of the inventory at the end of the year using the FIFO method?
A) $1,685
B) $1,575
C) $1,805
D) $3,585

Question

Quizplus · Accepted Answer

The FIFO (First-in, First-out) method assumes that the first items purchased are the first items sold, which means that the remaining inventory at the end of the year consists of the items purchased last. Using this method, the value of the remaining inventory is calculated by multiplying the number of units by the cost per unit of the last purchase, which was $5.75. Thus, the amount of the inventory at the end of the year using the FIFO method is:

$5.75 * 313 = $1,804.75

Rounded to the nearest dollar, the answer is C) $1,805.

What Is the Amount of the Inventory at the End