A company uses the periodic average cost method to account for inventory. For the year, the company had the following beginning inventory and purchases:
Beginning inventory on January 1
100 units
at
$
2,800
per unit
Purchase on March 1
400 units
at
$
3,000
per unit
Purchase on September 1
800 units
at
$
3,200
per unit
Sales for the year totaled 1,000 units, leaving 300 units on hand at the end of the year. The company reported ending inventory for $900,000. Which of the following is correct?
The amount reported for ending inventory is incorrect because management used a simple average instead of weighted-average to calculate the unit cost of inventory for the year.
The amount reported for ending inventory cannot be determined with the information given because the amount depends on which of the 1,000 units were assumed to be sold.
The amount reported for ending inventory is incorrect because the unit cost of ending inventory should be the average cost of the last 300 units purchased.
The amount reported for ending inventory is correct.
Answers: 2
Business, 22.06.2019 10:30
What are the positive environmental trends seen today? many industries are taking measures to reduce the use( _gold,carbon dioxide,ozone_) of -depleting substances and are turning to(_scarce,renewable,non-recyclable_) energy sources though they may seem expensive. choose one of those 3 option to fill the
Answers: 3
Business, 22.06.2019 14:00
Which of the following would be an accurate statement about achieving a balanced budget
Answers: 1
Business, 22.06.2019 14:40
Increases in output and increases in the inflation rate have been linked to
Answers: 2
A company uses the periodic average cost method to account for inventory. For the year, the company...
Mathematics, 12.01.2020 08:31
English, 12.01.2020 08:31
English, 12.01.2020 08:31
English, 12.01.2020 08:31
Mathematics, 12.01.2020 08:31
Physics, 12.01.2020 08:31
Chemistry, 12.01.2020 09:31
Chemistry, 12.01.2020 09:31