Where opening inventory of 50 units of finished goods are valued at $10 each and the average unit cost of 500 units produced during the period is $8.90, which method of inventory valuation gives a closing inventory value of $9.00 per unit? a) FIFO b) Weighted average c) Absorption cost based on normal activity d) Marginal cost
Where opening inventory of 50 units of finished goods are valued at $10 each and the average unit cost of 500 units produced during the period is $8.90, which method of inventory valuation gives a closing inventory value of $9.00 per unit? a) FIFO b) Weighted average c) Absorption cost based on normal activity d) Marginal cost
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 1PEA: The following three identical units of Item BZ1810 are purchased during November: Assume that one...
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Where opening inventory of 50 units of finished goods are valued at $10 each and the average
unit cost of 500 units produced during the period is $8.90, which method of
gives a closing inventory value of $9.00 per unit?
a) FIFO
b) Weighted average
c) Absorption cost based on normal activity
d) Marginal cost
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