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
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
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.
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