Question
In: Accounting
Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the...
|
Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition): |
| • | 45 units at $106 |
| • | 73 units at $75 |
| • | 170 units at $54 |
|
Sales for the year totaled 265 units, leaving 23 units on hand
at the end of the year. |
Multiple Choice
-
$1,242.
-
$1,292.
-
$2,438.
-
$1,551.
Solutions
Expert Solution
Answer: $1,551
.
.
Cost of units available for sale = (45 units x $106) + (73 units x $75) + (170 units x $54)
= $4,770 + $5,475 + $9,180
= $19,425
.
Number of units available for sale = 45 units + 73 units + 170 units = 288 units
.
Average cost per unit = Cost of Units available for sale / Number of Units available for sale
= $19,425 / 288 units
= $67.44791666666666…. per unit
.
The value of Ending Inventory = Number of units in Ending Inventory x Average cost per unit
= 23 units x $67.447916666666666
= $1,551.302083333333…..
= $1,551 àrounded to 0 decimal places
ekkarill92 answered 2 years agoRelated Solutions
Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the...
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Fulbright made the following purchases (listed in chronological
order of acquisition):
44 units at $96
74 units at $76
172 units at $50
Sales for the year totaled 271 units, leaving 19 units on hand at
the end of the year.
Ending inventory using the average cost method is: (Do not
round unit cost calculation. Round your final answer to the nearest
whole dollar amount.)
-------------------------------------------------------------------------------------------------------------------------------
On...
Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the...
Fulbright Corp. uses the periodic inventory system. During its
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(listed in chronological order of acquisition):
44 units at $112 per unit
90 units at $97 per unit
174 units at $77 per unit
Sales for the year totaled 290 units, leaving 18 units on hand
at the end of the year.
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Date
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1/1
Beginning Inventory
25
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1/4
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Date
Units Purchased/(Sold)
Cost Per Unit
Inventory Balance
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5,000
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following information related to its merchandise inventory during
the month of August 2018 is available:
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Inventory on hand—3,000 units;
cost $6.50 each.
8
Purchased 12,000 units for $5.70
each.
14
Sold 9,000 units for $12.20
each.
18
Purchased 7,000 units for $5.20
each.
25
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31
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Required:
Determine the inventory balance Altira would report in its August
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Altira Corporation uses a periodic inventory system. The
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8
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each.
14
Sold 15,000 units for $13.00
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Purchased 11,000 units for $6.00
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31
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