Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

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
Step 1

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. 

 

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS