Question

In: Accounting

a company purchased 500 units for $20 each on January 31. It purchased 600 units for...

a company purchased 500 units for $20 each on January 31. It purchased 600 units for $24 each on February 28. It sold a total of 640 units for $40 each from March 1 through December 31. What is the cost of ending inventory on December 31 if the company uses the first-in, first-out inventory costing method.

a)6960

b)2240

c)11040

d)9200

Solutions

Expert Solution

Ending inventory

= Units available for sale - Units sold

= (500+600) - 640 = 460 units

Cost of ending inventory

= 460 * 24

= 11040

Option C is the answer

ekkarill92 answered 2 years ago
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