Value of inventory using FIFO method (video below)

An inventory record card shows the following details.

April    1   40 units in stock at a cost of $20 per unit

April    6       90 units purchased at a cost of $35 per unit

April    15      50 units sold

April    22      80 units purchased at a cost of $30 per unit

April    27      75 units sold

What is the value of inventory at 30 April using the FIFO method?

Answer

Total purchase and beginning inventory in unit

= 40 +90+80 =210 units

Total sale in unit =50 + 75 = 125 units

Closing inventory in unit = 210-125= 85 units

Closing inventory in US$ = 2,575 (5 units @$35 and 80 units @$30)

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