Question ABCCompany employs a periodic inventory system and sells its inventoryt
ID: 2458061 • Letter: Q
Question
Question
ABCCompany employs a periodic inventory system and sells its inventoryto customers for $25 per
unit. ABC Company had the following inventory information availablefor the month of May:
May1 Beginning inventory 5,000 units @ $9 cost perunit
May6 Purchased 4,000 units @ $11 cost per unit
May8 Sold 3,000 units
May13 Purchased 2,000 units @ $5 cost per unit
May18 Sold 2,500 units
May21 Purchased 2,500 units @ $8 cost per unit
May28 Sold 1,800 units
May30 Purchased 2,000 units @ $18 cost per unit
Calculatethe dollar amount of ending inventory shown on ABCCompany's May 31 balance sheet using
the FIFO method. Do not use decimals in youranswer.
Question
Explanation / Answer
1700
$11
$18,700
2000
$5
$10,000
2500
$8
$20,000
2000
$18
$36,000
8200
$84,700
FIFO METHOD(PERIODIC METHOD) Total No. of units available forsale 15500 units No of units sold 7300 units Remaining Inventory 8200 units Ending Inventory on 31may UNIT UNIT COST AMOUNT1700
$11
$18,700
2000
$5
$10,000
2500
$8
$20,000
2000
$18
$36,000
8200
$84,700