Assume that Sparks uses a perpetual specific identification inventory system. Its ending inventory consists of 2 units from beginning inventory, 4 units from the Jan. 5 purchase, and 10 units from the Jan. 29 purchases. Calculate the dollar value of its ending inventory. Date Activity Jan 1 Beginning Inventory 10 @ $12 Jan 5 Purchase 10 @ $15 Jan 29 Purchase 10 @ $18 Jan 30 Sale 14 units $160 $450 Reason: This is the total inventory available. O $186 Reason: You figured what was sold. What is left =(2@$12)+(4@$15) +(10@$18). The question states the units left in ending inventory. O $264

Assume that Sparks uses a perpetual specific identification inventory system. Its ending inventory consists of 2 units from beginning inventory, 4 units from the Jan. 5 purchase, and 10 units from the Jan. 29 purchases. Calculate the dollar value of its ending inventory. Date Activity Jan 1 Beginning Inventory 10 @ $12 Jan 5 Purchase 10 @ $15 Jan 29 Purchase 10 @ $18 Jan 30 Sale 14 units $160 $450 Reason: This is the total inventory available. O $186 Reason: You figured what was sold. What is left =(2@$12)+(4@$15) +(10@$18). The question states the units left in ending inventory. O $264

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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