# Accounting

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The Divine Merchandising Corporation began March operations with merchandise inventory of 6 units, each of which cost \$27. During March, Divine Merchandising made the following purchases: (1) March 4, 12 units @ \$28 per unit, (2) March 15, 18 units @ \$30 per unit, (3) March 26, 14 units @ \$32 per unit. During March the Divine Merchandising Company sold the following units at a sales price of \$48 per unit: March 6, 11 units, March 20, 17 units, and March 28, 12 units. Operating expenses in March were \$640. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the FIFO inventory method, determine the inventory dollar amount on March 1.

a) \$288

b) \$162

c) \$180

d) \$192

e) \$168

• Accounting -

If you looking for the inventory at the beginning of March then you will ignore all of the question except for the beginning. Therefore your answer should be 6 units X the \$27/unit= \$162.

• Accounting -

thanks

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