Partridge bookstore had 500 units on hand at january 1, costing $9 each. purchases and sales during the month of january were as follows: partridge does not maintain perpetual inventory records. according to a physical count, 365 units were on hand at january 31.the cost of the inventory at january 31, under the fifo method isa : $3,285. b : $3,900. c : $4,015. d : $3,650.

A : $3,285

Explanation:

On January 1, for Partridge Bookstore

Units held = 500 units

Cost of the units = $9

Total value = 500 × $9

                   =  $4,500

If there are 365 units were on hand at January 31, cost of the inventory at January 31, under the FIFO method

= $9 × 365

= $3,285

The right option is A : $3,285.

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