Practice Questions, Question 17 x Your answer is incorrect. Try again Teal Corpo

Question

Practice Questions, Question 17 x Your answer is incorrect. Try again Teal Corporation uses the periodic inventory system to record its inventory. The following information was available for the month of November: Date Nov. 1 Nov. 8 Nov. 15 Nov. 22 Explanation Beginning inventory 6 S30 Units Unit Cost Total Cost 10 15 16 32 35 36 S 180 320 525 576 Purchase Purchase Total A total of 25 units were sold during the period Assuming the use of the first-in, first-out (FIFO) cost formula, what is the cost of the ending inventory? $786 $815 $852 $710

Explanation / Answer

Ending inventory units = units available for sale - units sold = 47-25 = 22

From 22 units, 16 units will remain from last purchase and 6 units from second last purchase because the Inventory method is FIFO.

Therefore ending inventory = (16*36)+(6*35)=786

Therefore answer is option A

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