Question

Question 4 Not yet answered Points out of 1.00 P Flag question Taurus Restaurant has the following inventory purchase and sales records from the last period. Calculate the ending inventory for the period using different methods and answer the following questions. Item: Potatoes Date Purchase Unit Cost Sales Units 5/1 BI 50 lbs. $1.50 50 lbs. 5/5 100 lbs. $2.00 30 lbs. 120 lbs. 5/8 50 lbs. 70 lbs. 5/10 50 lbs. $2.00 50 lbs. 70 lbs. 5/12 50 lbs. 20 lbs. 5/15 50 lbs. $2.50 25 lbs. 35 lbs. 5/17 50 lbs. $2.75 30 lbs. 65 lbs. 5/20 20 lbs. 45 lbs. 5/25 50 lbs. $3.00 95 lbs. 5/30 25 lbs. 70 lbs. What is the Ending Inventory value for FIFO method? Select one: a. $992.50 b. $115 c.$582.50 O d. $205

Answer 1

The correct answer is "D" : $ 205.

Refer to the workings below :

	Purchase ($)			Sale ($)	Closing Inventory ($)
Date	Units	Cost per unit	Total	Units	Units	Cost per unit	Total
5/1	50	1.5	75		50	1.5	75
5/5	100	2	200	30	20	1.5	30
					100	2	200
5/8				50	70	2	140
5/10	50	2	100	50	70	2	140
5/12				50	20	2	40
5/15	50	2.5	125	25	45	2.5	112.5
5/17	50	2.75	137.5	30	15	2.5	37.5
					50	2.75	137.5
5/20				20	45	2.75	123.75
5/25	50	3	150		45	2.75	123.75
					50	3	150
5/30				25	20	2.75	55
					50	3	150
						Closing Inventory	205 $ (55+150)