A Company Has Inventory of 15 Units at a Cost

question 217

Multiple Choice

A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, they purchased 10 units at $13 per unit. On August 12, they purchased 20 units at $14 per unit. On August 15, they sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory on August 15 after the sale?

• A)$140
• B)$160
• C)$210
• D)$380
• E)$590

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Definitions:

Mishandling

Inappropriate or careless management, leading to damage or loss.

Harmful

Causing or potentially causing damage, injury, or negative effects to someone or something.

Make Goods

Products or services offered to compensate for a deficiency or to fulfill a previously unmet obligation.

Sell or Lease

The commercial decision to either transfer ownership of a property or product for a price or to grant its use to someone else under a rental agreement.