"Easton Company uses 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 130 $11 5/5 Purchase 280 $13 5/15 Purchase 140 $15 5/25 Purchase 160 $17 Sales were 430 units at $25. Using the FIFO method, determine the dollar value of Ending Inventory for the month of May.”

$4,520

Explanation:

The computation of the dollar value of the ending inventory using the FIFO method is as follows:

But before that the ending inventory is

= Beginning inventory + purchased units + purchased units + purchased units - sales units

= 130 units + 280 units + 140 units + 160 units - 430 units

= 280 units

Now the ending inventory is

= 160 units × $17 + (280 units - 160 units) × $15

= $2,720 + $1,800

= $4,520