This is the information for the question...I\'m so confused the textbook doesn\'

Question

This is the information for the question...I'm so confused the textbook doesn't provide a really good example of how to figure this out:

The following units of a particular item were available for sale during the year:
Beginning inventory 100 units @ $60
Sale 75 units @ $112
First purchase 155 units @ $65
Sale 135 units @ $112
Second purchase 200 units @ $72
Sale 175 units @ 112

The firm uses the perpetual inventory system, and there are 70 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to the FIFO?

Explanation / Answer

There are 100 +155+200-135-175= 145 units left in inventory. Under FIFO the most recent purchases are in inventory so inventory is: 145 *72= 10,440.

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