Addison, Inc. uses a perpetual inventory system. The following is information ab

Question

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:

Sep. 1 Inventory 20 units at $20          4 Sold 10 units        10 Purchased 30 units at $25        17 Sold 20 units        30 Purchased 10 units at $30

If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is Answer a. $650 b. $750 c. $700 d. $800 Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:

Sep. 1 Inventory 20 units at $20          4 Sold 10 units        10 Purchased 30 units at $25        17 Sold 20 units        30 Purchased 10 units at $30

If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is $650 $750 $700 $800 Sep. 1 Inventory 20 units at $20          4 Sold 10 units        10 Purchased 30 units at $25        17 Sold 20 units        30 Purchased 10 units at $30

Explanation / Answer

If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is

=10 units at $30+20 units at $25 = $800

Answer:

d.$800

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