Acompany purchased 100 units for $30 each of 31 january. it purchased 130 units for $39 each on 28 february. it sold a total of 160 units for $45 each from 1 march to 31 december. what is the amount of ending inventory on 31 december if the company uses the first-in, first-out (fifo) inventory costing method? (assume that the company uses a perpetual inventory system)

The amount of ending inventory on 31 December is $2,730

Explanation:

Under First-in-first-out method, the company sell the old products than the new

In the given question,

On 31 Jan it purchase 100 units for $30 = 100 units × $30 = $3,000

On 28 Feb it purchase 130 units for $39 = 130 units × $39 = $5,070

And, from 1 march to 31 December it sold 160 units for $45 each

The 160 units could be taken from

100 units × $30 = $3,000

And remaining 60 units × $39 = $2,340

So, the remaining units i.e 70 units (130 units - 60 units) would be closing inventory units

So, the closing inventory = 70 units × $39 = $2,730

the answer is account d

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it