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 1 year ago

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