Autumn Company began the month of October with inventory of $29,000. The following inventory transactions occurred during the month:The company purchased inventory on account for $43,000 on October 12. Terms of the purchase were 310/310 , n30/�30 . Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $640 were paid in cash.On October 31, Autumn paid for the inventory purchased on October 12.During October inventory costing $20,100 was sold on account for $30,800.It was determined that inventory on hand at the end of October cost $51,250.

Autumn Company Inventory Analysis - OctoberGiven Information:Beginning Inventory: $29,000Purchase on…

Answered: Autumn Company began the month of…

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

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Autumn Company began the month of October with inventory of $29,000. The following inventory transactions occurred during the month:

The company purchased inventory on account for $43,000 on October 12. Terms of the purchase were 310/310 , n30/�30 . Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $640 were paid in cash.
On October 31, Autumn paid for the inventory purchased on October 12.
During October inventory costing $20,100 was sold on account for $30,800.
It was determined that inventory on hand at the end of October cost $51,250.

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