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Question - Hefty Company wants to know the effect of different inventory methods on financial statements. The information provided below relates to beginning inventory and purchases for the current year:
January 2 Beginning Inventory 500 units at $3.00 per unit
April 7 Purchased 1,100 units at $3.20 per unit
June 30 Purchased 400 units at $4.00 per unit
December 7 Purchases 1,600 units at $4.40 per unit
Sales during the year were 2,700 units at $5.00. If Hefty used the first-in first-out method, ending inventory would be:
a. $2,780.
b. $3,960.
c. $9,700.
d. $10,880.
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