A Company Had Beginning Inventory of 10 Units at a Cost

question 214

Multiple Choice

A company had beginning inventory of 10 units at a cost of $20 each on March 1. On March 2, it purchased 10 units at $22 each. On March 6 it purchased 6 units at $25 each. On March 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold?

• A) $520
• B) $570
• C) $450
• D) $470
• E) $490

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Definitions:

Net Asset Value

The value per share of a mutual fund or ETF, calculated by dividing the total value of all the securities in the portfolio, minus liabilities, by the number of outstanding shares.

Year-End Assets

The total value of all assets held by an individual or corporation calculated at the end of the fiscal year.

Liabilities

Financial obligations or debts owed by a company or an individual to creditors, typically classified as current (short-term) or long-term.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in the context of mutual funds to determine the per share market value.