An inventory record card shows the following details.
April 1. 40 units in stock at a cost of $20 per unit
6. 90 units purchased at a cost of $35 per unit
15. 50 units sold
22. 80 units purchased at a cost of $30 per unit
27. 75 units sold
What is the value of inventory at 30 April using the FIFO method?
Answer
Total purchase and beginning inventory in unit
= 40 +90+80 =210 units
Total sale in unit =50 + 75 = 125 units
Closing inventory in unit = 210-125= 85 units
Closing inventory in US$ = 2,575 (5 units @$35 and 80 units @$30)