Assume that Barb City acquires $2,000 ofinventory on May 1, 2022,having held no inventory previously. On June30, 2022, the end of BarbCity's fiscal year, a physical count shows $1,400still in stock. During2023, $900 of this inventory is used, resulting ina $500 remainingbalance of supplies on June 30, 2023.How should Barb City account for theseinventories? Show both thepurchase and consumption methods.

Calculation of closing stock = Opening stock + purchases - consumption = Closing stock

Assume that Barb City acquires $2,000 of inventory on May 1, 2022, having held no inventory previously. On Jun 30, 2022, the end of Barb City's fiscal year, a physical count shows $1,4 still in stock. During 2023, $900 of this inventory is used, resultine a $500 remaining balance of supplies on June 30, 2023. How should Barb City account for these inventories? Show both the purchase and consumption methods.

Assume that Barb City acquires $2,000 of inventory on May 1, 2022, having held no inventory previously. On Jun 30, 2022, the end of Barb City's fiscal year, a physical count shows $1,4 still in stock. During 2023, $900 of this inventory is used, resultine a $500 remaining balance of supplies on June 30, 2023. How should Barb City account for these inventories? Show both the purchase and consumption methods.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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