A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, they purchased 10 units at $13 per unit. On August 12, they purchased 20 units at $14 per unit. On August 15, they sold 30 units. Using the FIFO periodic 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

Quizplus · Accepted Answer

Under FIFO, the first units purchased are the first to be sold. The company sells 30 units: 15 units from August 1 at $12 each and 15 units from August 5 at $13 each. The remaining inventory is 5 units from August 5 at $13 each and 20 units from August 12 at $14 each, totaling $210.

A Company Has Inventory of 15 Units at a Cost