16:52itc.birzeit.eduXYZ Company uses the periodicinventory method and had thefollowing inventory informationavailable:UnitsUnit CostTotalCostBeginning1001/1entory$5$ 50020/2Purchase400$62,40025/7Purchase200$71,40010/10Purchase300$92,7001,000$7,000 Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of$5,000 in transit under FOB destination terms. What is the cost of inventory reported on the statement of financial position ?O a. $75,000O b. $80,000OC. S70,000O d. S60,000

We’ll answer the second question since the exact one wasn’t specified and the first question is…

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the statement of financial position ? O a. S75,000 O b. $80,000 O C. $70,000 O d. S60,000

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the statement of financial position ? O a. S75,000 O b. $80,000 O C. $70,000 O d. S60,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 12PB: Compare the calculations for gross margin for B76 Company, based on the results of the perpetual...

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Question

16:52
itc.birzeit.edu
XYZ Company uses the periodic
inventory method and had the
following inventory information
available:
Units
Unit Cost
Total
Cost
Beginning
100
1/1
entory
$5
$ 500
20/2
Purchase
400
$6
2,400
25/7
Purchase
200
$7
1,400
10/10
Purchase
300
$9
2,700
1,000
$7,000

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of
$5,000 in transit under FOB destination terms. What is the cost of inventory reported on the statement of financial position ?
O a. $75,000
O b. $80,000
OC. S70,000
O d. S60,000

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