16:52itc.birzeit.eduXYZ Company uses the periodicinventory method and had thefollowing inventory informationavailable:UnitsUnit CostTotalCostBeginning1001/1entory$5$ 50020/2Purchase400$62,40025/7Purchase200$71,40010/10Purchase300$92,7001,000$7,000 Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of$5,000 in transit under FOB destination terms. What is the cost of inventory reported on the statement of financial position ?O a. $75,000O b. $80,000OC. S70,000O d. S60,000

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Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the statement of financial position ? O a. S75,000 O b. $80,000 O C. $70,000 O d. S60,000

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the statement of financial position ? O a. S75,000 O b. $80,000 O C. $70,000 O d. S60,000

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Question

16:52
itc.birzeit.edu
XYZ Company uses the periodic
inventory method and had the
following inventory information
available:
Units
Unit Cost
Total
Cost
Beginning
100
1/1
entory
$5
$ 500
20/2
Purchase
400
$6
2,400
25/7
Purchase
200
$7
1,400
10/10
Purchase
300
$9
2,700
1,000
$7,000

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of
$5,000 in transit under FOB destination terms. What is the cost of inventory reported on the statement of financial position ?
O a. $75,000
O b. $80,000
OC. S70,000
O d. S60,000

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