in inventory At year-end, the perpetual inventory records of Anderson Co. indica
ID: 2569182 • Letter: I
Question
in inventory At year-end, the perpetual inventory records of Anderson Co. indicate 60 units of a particular prod acquired at the following dates and unit costs: Purchased in August: 30 units at $750 per unit. Purchased in November: 30 units at $700 per unit. plete physical inventory taken at year-end indicates only 50 units of this product actually are on hand Under the FIFO cost flow assumption, the cost of these items to be included in inventory in the company's year-end balance sheet is: Multiple Choice $36,500. $37,500. $36,000. $42,000.Explanation / Answer
Under FIFO cost flow assumption, cost of the inventory to be included :-
20 units * 750 + 30 units * 700 =
$ 36000
Option C is correct.
Under FIFO cost flow assumption , units purchased first are sold first , therefore, ending inventory comprises of latest purchased units.
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