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A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on...

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A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the First-In, First-Out inventory costing method, what is the amount of ending inventory on December 31?

A) $1,000

B) $1,500

C) $1,250

D) $2,250

First In First Out(FIFO) Inventory Valuation:

FIFO is a method of pricing the issues of materials in the order in which they are purchased. Materials are issued in the order in which they arrive in the store.

Answer and Explanation: 1

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Answer is B) 1500

Receipt Issue Balance
DateUnitsRate $ ValueDateUnitsRate $ ValueUnitsRate $ Value
Jan 3110020 2000 100202000
Feb 28100303...

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Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average

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Chapter 6 / Lesson 11
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Inventory valuation methods are ways that companies place a monetary value on the items they have in their inventory. Discover different inventory valuation methods, including specific identification, First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and weighted average.


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