AT HING APE-Page 2 × Power pol 4-) March 2018, XYZ , × board.ecu.edu/webapps/ass
ID: 2399789 • Letter: A
Question
AT HING APE-Page 2 × Power pol 4-) March 2018, XYZ , × board.ecu.edu/webapps/assessment/take/launch jsp?course assessment id 500093 18icourse id 445464 18 conte $1,200.00 $1,120.00 $1,195 00 $1,147.50 QUESTION 12 Ralph's Wholesale had the following beginning inventory and purchases of inventory during 2017 lan 1 Beginning Inventory March 1 Purchase May 1 Purchase July 1 Purchase Sept 1 Purchase November 1 Purchase TOTAL UNITS PRICE TOTAL 10 $15 $15o 30 $14 $420 40 $14 $560 10 $13 $130 20 $12 $240 12 5120 1,620 10 120 On the last day of the year, Ralph had 35 units in ending inventory Ralph sold 85 units during the year If Ralph applies the FIFO inventory costing sytem, then the balance sheet would report ending inventory of g,?? $420.00 s640 00 $425.00 $472.50 It Click Save and Submit to save and submit. Click Save All Answers to save all answers.Explanation / Answer
Under the FIFO method ending inventory consists of the recent purchases and Cost of goods sold consists of the earliest purchases.
The ending inventory of 35 consists of 10 units from November 1 purchases, 20 units from September 1 purchases and 5 units from July 1 purchases.
Ending inventory = (10*12) + (20*12) + (5*13)
= 120 + 240 + 64
= 425