Use this information to answer the following question.
A periodic inventory system is used.
-Using FIFO,the cost assigned to ending inventory is
A)$8,112.
B)$2,664.
C)$3,480.
D)$8,928.

Question

Use this information to answer the following question.  
A periodic inventory system is used.
-Using FIFO,the cost assigned to ending inventory is
A)$8,112. 
B)$2,664. 
C)$3,480. 
D)$8,928.

Quizplus · Accepted Answer

Since FIFO (First-in, First-out) method is used, the cost of the ending inventory will be the cost of the most recent purchases. Looking at the data given, the most recent purchase is on October 2, 2019, with a cost of $3,480. Therefore, the cost assigned to the ending inventory using FIFO method is $3,480, which is option C.

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