Castle TV, Inc. purchased 3,000 monitors on January 5 at a per-unit cost of $238, and another 3,000 units on January 31 at a per-unit cost of $310. In the period from February 1 through year-end, the company sold 5,450 units of this product. At year-end, 550 units remained inventory. Assume that Castle TV, Inc. uses the FIFO flow assumption. What is the cost of the 550 units in inventory at year-end?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter5: Introduction To Business Expenses
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What is the cost of the 550 units in inventory at year-end?

Castle TV, Inc. purchased 3,000 monitors on January 5 at a per-unit
cost of $238, and another 3,000 units on January 31 at a per-unit cost
of $310. In the period from February 1 through year-end, the company
sold 5,450 units of this product. At year-end, 550 units remained
inventory. Assume that Castle TV, Inc. uses the FIFO flow assumption.
What is the cost of the 550 units in inventory at year-end?
Transcribed Image Text:Castle TV, Inc. purchased 3,000 monitors on January 5 at a per-unit cost of $238, and another 3,000 units on January 31 at a per-unit cost of $310. In the period from February 1 through year-end, the company sold 5,450 units of this product. At year-end, 550 units remained inventory. Assume that Castle TV, Inc. uses the FIFO flow assumption. What is the cost of the 550 units in inventory at year-end?
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