The Notebook Company was formed on December 1, 2016. The following information is available from the company's inventory records:
|Balance as of May 1, 2017,||800||$104|
|May 7, 2017||19,000||$105|
|June 11, 2017||17,000||$106|
|July 23, 2017||3,200||$103|
|December 15, 2017||5,100||$107|
The company uses a periodic inventory system, and a physical inventory on December 30, 2017, shows 8,300 units on hand.
Using this information, the ending inventory value using FIFO is:
d. None of the above
Periodic Inventory System:
The periodic inventory system is a manual method of inventory where the inventory is calculated physically after a certain interval of time. Small business units where the inventory transactions are less can use a periodic inventory system as it involves less cost and it is simple to maintain.
Answer and Explanation: 1
According to the FIFO method, the goods purchased first will be sold first and the last purchases will be part of the ending inventory. Accordingly,...
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fromChapter 1 / Lesson 14
Explore the periodic inventory system. Learn the definition of the periodic inventory system and understand its advantages. See periodic inventory system examples.