Homework Help: very hard math question please help

Posted by Anonymous on Friday, November 9, 2007 at 9:57am.

The Candle Shop -Annual Inventory of candles.
_______-________________________________
Jan 1 Beg Inventory 5,000 units @$0.89
----------------------------------------
Feb 15 Purchase 10,000 units @ $0.69
________________________________________
April purchase 2,000 units @ $1.09
________________________________________
July 15 purchase 4,000 units @ $ 0.99
________________________________________Oct 15 purchase 1,000 units @$1.19
________________________________________Dec 15 purchase 2,000 units @$1.09
_______________________________________
________________________________________
Using the FIFO method of inventory pricing, what is the dollar value of ending inventory if there were 17,000 units on hand on Dec 31?
Someone please help this is very tough question I have know idea if you could show all your work and explian it to me thanks for your time

very hard math question please help - drwls, Friday, November 9, 2007 at 10:10am
The total number of units purchased was 24,000. Since there were 17,000 sold by Dec. 31, 7,000 were sold.
With FIFO (First In, First Out) accounting, the 7000 units sold would be the first 7000 bought, which would be 5000 at 0.89 and 2000 at 0.69 per unit. That cost would be $5830.
Subtract that amount from the total amount spent for inventory and you will have the dollar value of remainign inventory.

Answer this Question

Related Questions

math - Imagine that you're the manager of the Candle Shop. Figures C-1 ...
math - what is the dollar value of ending inventory if there were 17,000 units ...
Matth please explian - You are the manager of The Candle Shop using the FIFO ...
Math confused - Amy is the owner of The Candle Shop she uses the FIFO method for...
math - Sara is the manager of The Candle Shop She uses the FIFO method of ...
please check my answer - please check my answer thanks :) You are the manager of...
math please help - please check my answer thanks :) I messed up somewhere.:( ...
Business Math - Using the FIFO method of inventory pricing, what is the dollar ...
Math - I have 2 questions involving inventory Question 1. Your a manager of an ...
Accounting - Jan. 1 Merchandise inventory $144,200 Jan. 1–Feb. 7 Purchases...

For Further Reading

First Name:
School Subject:
Answer: