Homework Help is Here – Start Your Trial Now!
Business
Accounting
Using the AVCO/Weighted Average Method, what is the value of ending inventory after accounting for the transaction at May 1? Fuller & Stona sells a variety of school supplies from a store located at Cross Roads Mall. The business began the second quarter (April to June) of 2009 with 2,000 pencil cases at a total cost of $200,000. The following transactions took place during the quarter. April 10 Purchased 3,000 pencil cases on account at a cost of $110 each. An additional air freight charge of $2, as well as customs import charge of $3 per case was incurred. It is customary for Fuller and Stona to include freight in as part of the cost of the units in their inventory record. April 30 During the month 1, 000 pencil cases were sold at a price of $160 each. May 1 A new batch of 3,200 cases was purchased on account at a cost of $352,000. May 15 15 of the pencil cases purchased on April 10 were found to be defective and returned to the supplier. May 28 The sales for May were 2,350 pencil cases at a unit selling price of $120. Мaу 31 10 of the pencil cases sold at the start of business on May 28 were returned by the customer. Select one: O a. 8,000 units @ $109 each O b. 7,200 units @$109.44each O c. 8,000 units at $109.50 each O d. 7,200 units @ $109.50 each

Using the AVCO/Weighted Average Method, what is the value of ending inventory after accounting for the transaction at May 1? Fuller & Stona sells a variety of school supplies from a store located at Cross Roads Mall. The business began the second quarter (April to June) of 2009 with 2,000 pencil cases at a total cost of $200,000. The following transactions took place during the quarter. April 10 Purchased 3,000 pencil cases on account at a cost of $110 each. An additional air freight charge of $2, as well as customs import charge of $3 per case was incurred. It is customary for Fuller and Stona to include freight in as part of the cost of the units in their inventory record. April 30 During the month 1, 000 pencil cases were sold at a price of $160 each. May 1 A new batch of 3,200 cases was purchased on account at a cost of $352,000. May 15 15 of the pencil cases purchased on April 10 were found to be defective and returned to the supplier. May 28 The sales for May were 2,350 pencil cases at a unit selling price of $120. Мaу 31 10 of the pencil cases sold at the start of business on May 28 were returned by the customer. Select one: O a. 8,000 units @ $109 each O b. 7,200 units @$109.44each O c. 8,000 units at $109.50 each O d. 7,200 units @ $109.50 each

Intermediate Accounting: Reporting And Analysis
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 5MC: The moving average inventory cost flow assumption is applicable to which of the following inventory...
See similar textbooks
icon
Related questions
Topic Video
Question
Using the AVCO/Weighted Average Method, what is the value of ending inventory after accounting for the transaction at May 1? Fuller & Stona sells a variety of school supplies from a store located at Cross Roads Mall. The business began the second quarter (April to June) of 2009 with 2,000 pencil cases at a total cost of $200,000. The following transactions took place during the quarter. April 10 Purchased 3,000 pencil cases on account at a cost of $110 each. An additional air freight charge of $2, as well as customs import charge of $3 per case was incurred. It is customary for Fuller and Stona to include freight in as part of the cost of the units in their inventory record. April 30 During the month 1, 000 pencil cases were sold at a price of $160 each. May 1 A new batch of 3,200 cases was purchased on account at a cost of $352,000. 15 of the pencil cases purchased on April 10 were found to be defective and returned to the supplier. May 15 May 28 The sales for May were 2,350 pencil cases at a unit selling price of $120. May 31 10 of the pencil cases sold at start of business on May 28 were returned by the customer. Select one: O a. 8,000 units @ $109 each O b. 7,200 units @$109.44each O c. 8,000 units at $109.50 each O d. 7,200 units @ $109.50 each
Transcribed Image Text:Using the AVCO/Weighted Average Method, what is the value of ending inventory after accounting for the transaction at May 1? Fuller & Stona sells a variety of school supplies from a store located at Cross Roads Mall. The business began the second quarter (April to June) of 2009 with 2,000 pencil cases at a total cost of $200,000. The following transactions took place during the quarter. April 10 Purchased 3,000 pencil cases on account at a cost of $110 each. An additional air freight charge of $2, as well as customs import charge of $3 per case was incurred. It is customary for Fuller and Stona to include freight in as part of the cost of the units in their inventory record. April 30 During the month 1, 000 pencil cases were sold at a price of $160 each. May 1 A new batch of 3,200 cases was purchased on account at a cost of $352,000. 15 of the pencil cases purchased on April 10 were found to be defective and returned to the supplier. May 15 May 28 The sales for May were 2,350 pencil cases at a unit selling price of $120. May 31 10 of the pencil cases sold at start of business on May 28 were returned by the customer. Select one: O a. 8,000 units @ $109 each O b. 7,200 units @$109.44each O c. 8,000 units at $109.50 each O d. 7,200 units @ $109.50 each
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Century 21 Accounting General Journal
Century 21 Accounting General Journal
Accounting
ISBN:
9781337680059
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS