Answer:
The dollar amount of inventory at the end of the year according to the First-in, First-out method of inventory valuation is:
$6,600.
Explanation:
a) Data and Calculations:
Beginning inventory 10 units at $160 $1,600
First purchase 15 units at $220 3,300
Second purchase 30 units at $280 8,400
Third purchase 20 units at $260 5,200
Total 75 units $18,500
Ending inventory 25 units
Cost of goods sold 50 units
Ending inventory under First-in, First-out method:
20 units at $260 = $5,200
5 units at $280 = 1,400
25 units = $6,600
Cost of goods sold = Cost of goods available for sale minus ending inventory = $18,500 - 6,600 = $11,900
