A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, it purchased 10 units at $13 per unit. On August 12 it purchased 20 units at $14 per unit. On August 15, it 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 sale of 30 units includes 15 units at $12 (from August 1) and 15 units at $13 (from August 5), totaling $375. The remaining inventory is 5 units at $13 and 20 units at $14, totaling $210.

A Company Has Inventory of 15 Units at a Cost