Question
WellSurf Ltd sells one type of surfboard and has the following inventory transactions for the half year ending 31 December 2020: Units Price/unit Total Opening
WellSurf Ltd sells one type of surfboard and has the following inventory transactions for the half year ending 31 December 2020:
|
| Units | Price/unit | Total |
| Opening inventory at 1 July 2020 | 500 | $250 | $125,000 |
| Purchases on 1 August 2020 | 1000 | $260 | $260,000 |
| Purchases on 15 October 2020 | 500 | $290 | $145,000 |
| Purchases on 20 December 2020 | 900 | $300 | $270,000 |
| Total | 2900 |
| $800,000 |
During the year, WellSurf Ltd sells 2500 surfboards. The company uses the periodic system to manage inventory.
What is the ending inventory at 31 December 2020 using the FIFO method?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
