A company had a beginning inventory of 11 units at a cost of $17 each on March 1. On March 2, it...
Question:
A company had a beginning inventory of 11 units at a cost of $17 each on March 1. On March 2, it purchased 11 units at $28 each. On March 6 it purchased 5 units at $22 each. On March 8, it sold 26 units for $65 each.
Using the FIFO perpetual inventory method, what was the cost of the 26 units sold?
Perpetual Inventory Method:
A perpetual inventory system of accounting consistently brings up to date and takes count of the inventory count of the business electronically with the help of specialized software.
Answer and Explanation: 1
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View this answer- Using the FIFO method, the first in inventory will be sold first, then the later, and so on. The 26 units sold will be taken from the beginning...
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Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
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Chapter 6 / Lesson 11
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Inventory valuation methods are ways that companies place a monetary value on the items they have in their inventory. Discover different inventory valuation methods, including specific identification, First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and weighted average.
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