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March 29, 2017

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Amy is the owner of The Candle Shop she uses the FIFO method for inventory pricing, what is the dollar value of the ending inventory if there were 17,000 units on hand Dec 31
ok this is what I have so
Jan 1 5,000 @ $0.89
Feb15 10,000 @ $0 69
April 15 2,000 @$1.09
July 15 4,000 $0.99
Oct 15 1,000 1.19
Dec 15 2,000 $1.09


5,000 x $0.89 = 4450
10,000 x $0.69 = 6900
2,000 x $1.09 = 2180
4,000 x $0.99 = 3960
1,000 x $1.19 = 1190
2,000 x $1.09 = 2180
________________
+-------
20860

I am not sure what I do from here thanks for your help

  • Math confused - ,

    IF it is FIFO, then the older units go first. You should be totaling the value of units, starting with the most recent working back, until you get a total of 17000 units on hand. The first 5000 units are gone, and of the next 10000, only 8000 are on hand. Check my counting.

  • Math confused - ,

    I am trying to help a friend and I understand the first part but I am really confused about what to do next!!

    This is what I have so far

    10,000 x $0.69 = 6900
    2,000 x $1.09 = 2180
    4,000 x $0.99 = 3960
    1,000 x $1.19 = 1190
    2,000 x $1.09 = 2180


    10,000
    2,000
    4,000
    1,000
    2,000
    =
    19,000

    how do I figure out the dollar value of ending inventory if there were 17,000 units on hand on December 31?

    This is where I really start having a problem. Can you please explain what I need to do next??

    Thanks!!

  • Math confused bobpursley - ,

    8000 x .69+ 2000 x 1.09 + 4000 x .99 + 1000 x 1.19 + 2000 x 1.09 =

    8000 x .69 = 5520 + 2000 =7520
    7520 x 1.09 = 8196.80
    8196.80 + 4000 = 12196.80
    12196.80 x.99 =


    am I doing this right so farI need to show all of my work

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