A company just starting its business made the following four inventory purchases in June:
A company just starting its business made the following four inventory purchases in June:
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...
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A company just starting its business made the following four inventory purchases in June:
Date | Number of Units | Total Cost | |
Jun | 1 | 260 | $832 |
Jun | 10 | 320 | 1056 |
Jun | 15 | 320 | 1088 |
Jun | 28 | 260 | 910 |
On June 25, the company made its first sale when a local customer purchased 730 units for $3,500. The company uses a perpetual inventory system.
Using the FIFO cost formula, the cost of the ending inventory on June 30 is
$1488.
$2398.
$3230.
$1428.
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