The following lots of Commodity D were available for sale during the year. Use this information to answer the question. Beginning inventory 10 units at $60 First purchase 25 units at $65 Second purchase 30 units at $68 Third purchase 15 units at $75 The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year using the FIFO method?

$1,575

$1,685

$3,585

$1,805

ending inventory is $1575

Explanation:

given data

Beginning inventory 10 units = $60

First purchase 25 units = $65

Second purchase 30 units = $68

Third purchase 15 units = $75

to find out

amount of the inventory at the end of the year

solution

LIFO method

cost of goods cost of goods ending

sales sold inventor

beginning 10 * 60 = 600 0 * 60 = 0 10 * 60 = 600

inventory

first 25 * 65 = 1625 10 * 65 = 652 15 * 65 = 975

second 30 * 68 = 2040 30 * 68 = 2040 0 * 68 = 0

third 15 * 75 = 1125 15 * 75 = 1125 0 * 75 = 0

total 5390 3815 1575

so ending inventory is $1575