The following information relates to inventory for Shoesless Joe Inc. Date Quant

Question

The following information relates to inventory for Shoesless Joe Inc.

     Date                                         Quantity       Price

     March 1       Beginning Inventory                 20           $2

     March 7       Purchase                          15           3

     March 11      Sale                               25          7

     March 12     Purchase                           20           4

At what amount would Shoesless report ending invendtory using FIFO cost flow assumptions?

a.$55

b.$170

c.$110

d.$70

e.None of the above

Explanation / Answer

Using FIFO, COGS will be 20*$2+5*$3 = $55

SO Endig Inv will be 10*$3+20*$4 = $110 ....Ans C

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.