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:

Dividend Income Distributions

Payments made by a corporation to its shareholders, often derived from the company's earnings, representing a share of the profits.

Capital Gains Distributions

Earnings paid to shareholders from the fund's sale of securities, representing a portion of the profits realized by the investment.

Net Asset Value

The value per share of a mutual fund or an exchange-traded fund, calculated by dividing the total value of all the fund's assets minus liabilities by the number of shares outstanding.

Year-End Assets

The total value of all assets owned by an entity at the end of the fiscal year.