00:01
In this example, you've been given different pieces of data for radford company and been asked to calculate the value of fifo ending inventory.
00:08
First, let's figure out how much would be in our ending inventory.
00:14
We started off with 31 ,000 units, and we purchased these extra units for a total now of 34 ,300.
00:24
And it says we sold 3 ,400 units.
00:28
So the amount that's in my ending inventory is $30 ,900.
00:34
Now, what would be the cost of ending inventory under first in, first out method? first and first out means you're selling your earlier buckets of goods.
00:47
So starting at the top here, getting rid of the oldest units first, which means my ending inventory would come from the latter buckets, my most recent purchases.
01:00
All of this then would be included in the ending inventory, because that doesn't even get us close to accounting for the full $30 ,900.
01:10
Let's find the total in each of these three buckets because all three of these are still going to be left over in my ending inventory...