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Assume That Sparks Uses a Perpetual FIFO Inventory System. Its Ending Inventory Consists of 9 Units. Calculate the Dollar Value of Its

Question

Assume that Sparks uses a perpetual FIFO inventory system. Its ending inventory consists of 9 units. Calculate the dollar value of its ending inventory. Date & Activity & Jan 1 & Beginning Inventory & 10 @ 12 Jan 8 & Purchase & 20 @ 18 Jan 15 & Sale & 21 units 162 90 288 135

Answer

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Peryn Master · Tutor for 5 years

Answer

### $135

Explanation

## Step 1: Identify the inventory transactions### We have beginning inventory, a purchase, and a sale.## Step 2: Calculate the cost of goods sold (COGS) using FIFO### FIFO means the first items purchased are the first sold. Calculate COGS for the sale of 21 units.## Step 3: Determine the ending inventory### Subtract the units sold from the total units available and calculate the value of the remaining inventory using FIFO.