A company purchased 100 units for $30 each on January 31. It purchased 300 uni for $20 each on February 28. It sold a total of 370 units for $110 each from March through December 31. If the company uses the last - in, first-out inventory costing method, calculate the cost of ending inventory on December 31. (Assume that the company uses a perpetual inventory system.) A. $900 B. $600 O C. $2,400 O D. $30

A company purchased 100 units for $30 each on January 31. It purchased 300 uni for $20 each on February 28. It sold a total of 370 units for $110 each from March through December 31. If the company uses the last - in, first-out inventory costing method, calculate the cost of ending inventory on December 31. (Assume that the company uses a perpetual inventory system.) A. $900 B. $600 O C. $2,400 O D. $30

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 6MCQ: Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is...

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Question

A company purchased 100 units for $30 each on January 31. It purchased 300 units
for $20 each on February 28. It sold a total of 370 units for $110 each from March 1
through December 31. If the company uses the last – in, first – out inventory costing
method, calculate the cost of ending inventory on December 31. (Assume that the
company uses a perpetual inventory system.)
A. $900
B. $600
C. $2,400
D. $30

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