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In: Accounting

Taylorly Corporation just began business and made the following four inventory purchases in May: May 1...

Taylorly Corporation just began business and made the following four inventory purchases in May:

May 1 114 units $750
May 10 152 units 1020
May 15 152 units 1040
May 28 114 units 808
$3618


A physical count of merchandise inventory on May 30 reveals that there are 152 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for May is

Solutions

Expert Solution

Units

Cost per unit

value

1-May

114

$   6.58*

$          750.00

Purchases

10-May

152

$    6.71

$       1,020.00

15-May

152

$   6.84

$       1,040.00

18-May

114

$   7.09

$          808.00

532

$       3,618.00

*$750/114 and similarly for all purchases.

Valuation of Ending Inventory

FIFO

Total Units Available for sale

532

Units Sold

380

Closing Stock in Units

152

Valuation

Closing stock

114

@

$   7.09

$     808

38

@

$   6.84

$     260

Value Of Ending Inventory for may ($808+$260)

$ 1,068

Answer = $1,068

ekkarill92 answered 3 years ago
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