AAA Co. uses a periodic inventory system and has the following information in regard to its inventory: There are 800 units in ending inventory. What is the amount of the ending inventory using the FIFO method

$13,350

Explanation:

Calculation for Ending inventory using the FIFO method

ENDING INVENTORY

Purchase on October 2(550 units *17) $9,350

Add Purchase on March 15 (250 units*16) $4,000

Ending inventory $13,350

($9,350+$4,000)

Note: Purchase on October2550 units -800 units in ending inventory=250 units

Therefore the Ending inventory using the FIFO method will be $13,350

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