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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 ending inventory. Date & Activity & Jan 1 & Beginning Inventory & 10 @ 12 Jan 8 & Purchase & 20 @ 18 Jan 15 & Sale & 21 units 162 90 288 135

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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 ending inventory.

 Date & Activity & 
 Jan 1 & Beginning Inventory & 10 @  12 
 Jan 8 & Purchase & 20 @  18 
 Jan 15 & Sale & 21 units 


  162 
  90 
  288 
  135

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

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PerynMaster · Tutor for 5 years

Answer

### $135

Explain

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