The beginning inventory and purchases of Commodity X for the

The beginning inventory and purchases of Commodity X for the period were as follows: Inventory, beginning Sold 5 Units 6 units at $40 each First purchase Sold 6 Units Second purchase 5 units at $43 each Sold 3 Units Third purchase 5units at $45 each Sold 3 Units The company uses the perpetural system and there were 7 units of Commodity X in the inventory at 8 units at $41 each the end of the period. Determine the cost of ending inventory under FIFO OA. $135 O B. 299 O C. 311 O D. 248

Solution

Solution: 311

Working: Cost of ending inventory under FIFO:

= (5 units * $45) + (2 units * $43)

= 225 + 86

= 311