McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4. Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale

Closing Inventory value is $3,485.

Explanation:

FIFO is the inventory costing method which assumes that the item purchased earlier will be sold first and the item purchases at last will be sold at last.

According to FIFO the inventory cost of McCarthy Company is as follow:

Date           Description    Price   Unit      Total    Balance

October 1     Opening      $200     8       $1,600   $1,600

October 2    Purchases   $205     20     $4,100   $5,700

October 4    Sales           $200      8       $1,600   $4,100

                    Sales           $205      3        $615     $3,485

Closing Inventory value is $3,485.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer(b); ; ; the quantitative or qualitative variable for which the experimenter wishes to determine how its value is affected by the explanatory variable;