Question
The To-Brady Corporation, an international distribution company, purchases cases of footballs from the Aaron-Rog Company and markets the footballs under the To-Brady brand name. In
The To-Brady Corporation, an international distribution company, purchases cases of footballs from the Aaron-Rog Company and markets the footballs under the To-Brady brand name. In the table below, Quarter 1 represents the time period from January 1, 2021 to March 31, 2021. Assume that To-Brady began operations on January 1, 2021 with 15,600 cases of footballs valued at $21 per case. In the first quarter of 2021, To-Brady sold 130,000 cases of footballs at at a price of $55 per case. Purchase data for To-Brady's first quarter of business is shown in the following table:
Month | Number of Cases Purchased | Cost per Case |
January | 30,000 | $30 |
February | 45,000 | $37 |
March | 60,000 | $46 |
Based on this information, if To-Brady Corporation uses the FIFO inventory valuation method, what did the company report as Ending Inventory for the first quarter of 2021?
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