Answer:
the ending inventory value for the month of May using the FIFO inventory cost method c. $284
Explanation:
FIFO Inventory System sell the Older Inventory Acquired First Followed by the Recent Acquired Inventory
May 3
Inventory : 5 unit × $16 = $80
May 10
Inventory : 1 unit × $16 = $16
May 17
Inventory : 1 unit × $16 = $16
9 units × $17= $153
Total =$169
May 20
Inventory : 6 units × $17 =$102
May 23
Inventory : 4 units × $17 =$68
May 30
Inventory : 4 units × $17 =$68
9 units × $24 =$216
Total =$284
Answer:
The ending inventory value for the month of May using the FIFO inventory cost method: c. $284
Explanation:
The FIFO is a method used to account value for inventory. Under the method, the first item of inventory purchased is the first one sold.
1. May 1, No inventory
2. May 03, Purchased 5 units, $16 per unit
Inventory: $16 x 5 = $80
3. May 10, Sale 4 units
Cost of good sold = 4 x $16 = $64
The inventory = $80 - $64 = $16 (1 unit, $16 per unit)
4. May 17, Purchased 9 units, $17 per unit
The inventory: $169
1 units, $16 per unit, total $16
9 units $17 per unit, total $153
5. May 20, Sold 4 units
Cost of goods sold = 1 x $16 + 3 x $17 = $67
The inventory: 6 units $17 per unit, total $102
6. May 23, Sold 2 units
Cost of goods sold = 2 x $17 = $34
The inventory: 4 units $17 per unit, total $68
7. May 30, Purchased 9 units, $24 per unit
Inventory: $284
4 units $17 per unit, total $68
9 units $24 per unit, total $216
