Inventory starts with 180 units at $20 and 100 units at $23. If 210 units are issued under FIFO, what ending inventory value remains?
Correct Answer
D) $1,610
FIFO leaves 70 units from the $23 layer.
Why This Is the Correct Answer
FIFO leaves 70 units from the $23 layer.
Why the Other Options Are Wrong
Option A: $1,380
$1,380 is below the supported result for fifo ending inventory; it likely uses the wrong base, period, or account bucket.
Option B: $1,500
$1,500 is below the supported result for fifo ending inventory; it likely uses the wrong base, period, or account bucket.
Option C: $1,560
$1,560 is below the supported result for fifo ending inventory; it likely uses the wrong base, period, or account bucket.
Memory Technique
Reconciles Warehouse money test: bucket before math for fifo ending inventory.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Accounting for Materials, Controlling Inventory; use the job ledger figures in the stem and recompute the same accounting measure.
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