Question

The following units and costs of lawnmower Model 200 were available for sale during the year for Craftsman Hardware:

Beginning inventory ..... 10 units at $130

First purchase ..... 15 units at $135

Second purchase ..... 30 units at $140

Third purchase ..... 20 units at $145

Craftsman has 30 units on hand at the end of the year. What is the dollar amount of inventory at the end of the year according to the first-in, first-out method?

Select one: A. $3,900 B. $4,350 C. $ 4,300 D. $4,025

Answer 1

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	The dollar value of ending inventory is $ 4,300 so the correct answer is option C $ 4,300
	Computation of dollar value of inventory at the end of the year
	Particulars	Units	Unit cost	Total cost	Remarks	Units	Unit cost	Total cost
	Beginning Inventory	10	130	1,300	Sold
	First Purchase	15	135	2,025	Sold
	Second Purchase	30	140	4,200	10 Units Sold	10	140	1,400
	Third Purchase	20	145	2,900		20	145	2,900
		75		10,425		30		4,300