For XYZ company, the following lots of a particular commodity were available for sale during the year:units at $60Beginning inventory 10First purchaseSecond purchase25units at $6530units at $68Third purchase15units at $75The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year.What is the amount of the inventory at the end of the year using the FIFO method?$1,575O $1,805O $1,685$3,585

Name: For XYZ company, the following lots of a particular commodity were av
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Description: For XYZ company, the following lots of a particular commodity were available for sale during the year:units at $60Beginning inventory 10First purchaseSecond purchase25units at $6530units at $68Third purchase15units at $75The firm uses the periodic s

Solution- Fifo method- First 10 units takes from the beginning inventory= 10 * 60=$600 than rest 15…

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or XYZ company, the following lots of a particular commodity were available for sale during the year:se Beginning inventory 10 First purchase units at $60 25 units at $65 Second purchase 30 units at $68 Third purchase 15 units at $75

or XYZ company, the following lots of a particular commodity were available for sale during the year:se Beginning inventory 10 First purchase units at $60 25 units at $65 Second purchase 30 units at $68 Third purchase 15 units at $75

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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For XYZ company, the following lots of a particular commodity were available for sale during the year:
units at $60
Beginning inventory 10
First purchase
Second purchase
25
units at $65
30
units at $68
Third purchase
15
units at $75
The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year.
What is the amount of the inventory at the end of the year using the FIFO method?
$1,575
O $1,805
O $1,685
$3,585

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