Asked by Andrea S. Marrero on May 07, 2024
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Oscar Industries has the following inventory information. July 1 Beginning Inventory 40 units at $1105 Purchases 240 units at $11214 Sale 160 units 21 Purchases 120 units at $11530 Sale 150 units \begin{array}{rll}\text { July } 1 & \text { Beginning Inventory } & 40 \text { units at } \$ 110 \\5 & \text { Purchases } & 240 \text { units at } \$ 112 \\14 & \text { Sale } & 160 \text { units } \\21 & \text { Purchases } & 120 \text { units at } \$ 115 \\30 & \text { Sale } & 150 \text { units }\end{array} July 15142130 Beginning Inventory Purchases Sale Purchases Sale 40 units at $110240 units at $112160 units 120 units at $115150 units
Assuming that a periodic inventory system is used what is the amount allocated to ending inventory on a FIFO basis?
A) $10350
B) $10000
C) $35080
D) $34730
Periodic Inventory System
An accounting method where inventory is updated and cost of goods sold is calculated at the end of an accounting period.
FIFO
FIFO stands for "First-In, First-Out," an inventory valuation method where goods first acquired are sold or used first, ensuring that older inventory is used before newer inventory.
Ending Inventory
The aggregate worth of merchandise ready for purchase at the conclusion of a financial period.
- Gain insight into the calculation and effects of diverse inventory methodologies (FIFO, LIFO, Average Cost) on finance statements.
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Learning Objectives
- Gain insight into the calculation and effects of diverse inventory methodologies (FIFO, LIFO, Average Cost) on finance statements.
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