Question

could someone explain this plz

Question 27 (1 point) Use the following information for the year of 2019. January 1: Beginning inventory of 50 units at $20 per unit March 5: Purchases of 30 units at $25 per unit April 15: Sales of 20 units at $30 per unit May 30: Purchases of 50 units at $15 per unit November 15: Sales of 90 units at $32 per unit December 31: Ending inventory of 20 units Assume that the company uses the FIFO (First-in, First-out) method. What is the value of inventory that must be reported on the balance sheet at the end of the year of 2019? For your answer, make sure to put the number without dollar signs ($), commas (,), periods (.), and decimal points. Again, please state the number only without dollar signs, commas, periods, and decimal points for your answer. For example, if the answer happens to be 12345, then you must simply put 12345

Answer 1

Under FIFO, inventories purchased first are assumed to be sold first.

Ending inventory under FIFO will comprise of most recent purchases.

The most recent purchase is May 30

Ending inventory = 20*15 = 300

300 is correct answer