Units Unit cost Total cost Jan.1 Beginning balance 5 Purchase 15 Sale 10,000 150 1,500,000 10,000 180 1,800,000 (15,000) 1,000 16 Sale return 25 Purchase 3,500 9,500 200 700,000 31 Ending balance 14. If the FIFO periodic cost flow method is used, what is the cost of ending inventory on January 31?

Units Unit cost Total cost Jan.1 Beginning balance 5 Purchase 15 Sale 10,000 150 1,500,000 10,000 180 1,800,000 (15,000) 1,000 16 Sale return 25 Purchase 3,500 9,500 200 700,000 31 Ending balance 14. If the FIFO periodic cost flow method is used, what is the cost of ending inventory on January 31?

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 6.2BE: Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as...

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Units
Unit cost
Total cost
Jan.1 Beginning balance
5 Purchase
10,000
150
1,500,000
10,000
180
1,800,000
15 Sale
16 Sale return
(15,000)
1,000
3,500
9,500
25 Purchase
200
700,000
31 Ending balance
14. If the FIF0 periodic cost flow method is used, what is the cost of ending inventory on
January 31?
a. 1,780,000
b. 1,690,000
1,425,000
d. 1,900,000
с.
15. If the FIFO periodic cost flow method is used, what is the cost of sale for January?
а. 2,220,000
b. 2,310,000
c. 2,575,000
d. 2,100,000
16. If the FIFO perpetual cost flow method is used, what is the cost of sale for January?
a. 2,220,000
b. 2,310,000
c. 2,575,000
d. 2,100,000
17. If the FIFO perpetual cost flow method is used, what is the cost of ending inventory on
January 31?
a. 1,780,000
b. 1,690,000
c. 1,425,000
d. 1,900,000

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