Reference no: EM132993258

Problem 1: Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to the ending inventory using FIFO.

Date             Activities          Units Acquired at Cost                  Units Sold at Retail

May 1      Beginning inventory        168 units                           @ $10 = $1,680

May 5          Purchase                   238 units                            @ $12 = $2,856

May 10         Sales                       158 units                               @ $20

May 15          Purchase                    118 units                          @ $13 = $1,534

May 24               Sales                        108 units                         @ $21

Multiple Choice

Option 1: $3,214

Option 2: $2,856
 
Option 3: $3,084

Option 4: $2,824

Option 5: $3,094