Megapharma, Inc. a international business operating in the pharmaceutical industry follows FIFO costing method for its inventories. During the month of October, the business reported the following information for one of its main products. During the month the company sold 2,400 kilos. Compute the cost of the ending inventory.   Kilos Cost Per Kilo Beginning Inventory            300 $40 Purchases:     14 October                          1100 $42 26 October                           1400 $44 29 October                          1200 $45 Total                                   4000   Group of answer choices $76,100 $71

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Chapter1: Financial Statements And Business Decisions
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Megapharma, Inc. a international business operating in the pharmaceutical industry follows FIFO costing method for its inventories. During the month of October, the business reported the following information for one of its main

products.

During the month the company sold 2,400 kilos.

Compute the cost of the ending inventory.

  Kilos Cost Per Kilo
Beginning Inventory            300 $40
Purchases:    
14 October                          1100 $42
26 October                           1400 $44
29 October                          1200 $45
Total                                   4000  
Group of answer choices
$76,100
$71,600
$68,200
$67,000
Expert Solution
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First In First Out refers to the process of asset-management and valuation in which assets produced or purchased first are sold, disposed or used firstly in a corporation. 

 

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