Use the information below to answer the following questions.
The following lots of a particular commodity were available for sale during the year:
$\begin{array}{ll}
\text { Beginning inventory } & 10 \text { units at } \$ 60 \
\text { First purchase } & 25 \text { units at } \$ 65 \
\text { Second purchase } & 30 \text { units at } \$ 68 \
\text { Third purchase } & 15 \text { units at } \$ 75
\end{array}$ The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year.
-What is the amount of inventory at the end of the year using the FIFO method??
A) $1,685
B) $1,575
C) $1,805
D) $3,585

Question

Use the information below to answer the following questions.
The following lots of a particular commodity were available for sale during the year:
 $\begin{array}{ll}
\text { Beginning inventory } & 10 \text { units at } \$ 60 \
\text { First purchase } & 25 \text { units at } \$ 65 \
\text { Second purchase } & 30 \text { units at } \$ 68 \
\text { Third purchase } & 15 \text { units at } \$ 75
\end{array}$ The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year.
-What is the amount of inventory at the end of the year using the FIFO method??
A) $1,685
B) $1,575
C) $1,805
D) $3,585

Quizplus · Accepted Answer

Under FIFO (First-In, First-Out), the ending inventory consists of the most recent purchases. Therefore, the 25 units on hand would be from the third purchase (15 units at $75) and the second purchase (10 units at $68), totaling $1,805.

Use the Information Below to Answer the Following Questions The Firm Uses the Periodic System, and There Are 25