The ending inventory assuming FIFO is:
A)$5,140.
B)$5,080.
C)$5,060.
D)$5,050.Ending inventory is assumed to consist of 600 gallons from Mar.23 purchase: 600 $7.35 = $4,410
+ 100 from the Mar.16 purchase:
100 $7.30 = $730;
Total = $5,140.

Question

Quizplus · Accepted Answer

FIFO (first-in, first-out) assumes that the first items purchased are the first items sold. Therefore, the ending inventory would consist of the most recent purchase (600 gallons at $7.35) and the remaining amount from the previous purchase (100 gallons at $7.30), totaling $5,140.

The Ending Inventory Assuming FIFO Is