Bramble Inc. has provided you with the following information. This company purchases its inventory from a supplier for cash and has only cash sales. Bramble uses the average cost formula in a perpetual inventory system. Increased competition has recently reduced the price of the product. Date Explanation Apr. 1 Beginning inventory 6 Purchases 8 Sales 15 Purchases 20 Sales 27 Purchases Units 50 110 (130) 120 (120) 20 Ending Inventory Valued at $ Unit Cost $79 91 70 63 Unit Price $115 103 On April 30, Bramble learns that the product has a net realizable value of $50 per unit. Determine the amount that ending inventory will be valued at on the April statement of financial position.
Bramble Inc. has provided you with the following information. This company purchases its inventory from a supplier for cash and has only cash sales. Bramble uses the average cost formula in a perpetual inventory system. Increased competition has recently reduced the price of the product. Date Explanation Apr. 1 Beginning inventory 6 Purchases 8 Sales 15 Purchases 20 Sales 27 Purchases Units 50 110 (130) 120 (120) 20 Ending Inventory Valued at $ Unit Cost $79 91 70 63 Unit Price $115 103 On April 30, Bramble learns that the product has a net realizable value of $50 per unit. Determine the amount that ending inventory will be valued at on the April statement of financial position.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not provide answer in image format
Transcribed Image Text:Bramble Inc. has provided you with the following information. This company purchases its inventory from a supplier for cash and
has only cash sales. Bramble uses the average cost formula in a perpetual inventory system. Increased competition has recently
reduced the price of the product.
Date
Explanation
Apr. 1 Beginning inventory
6
Purchases
8
Sales
Purchases
Sales
Purchases
15
20
27
Units
50
110
(130)
120
(120)
20
Ending Inventory Valued at $
Unit
Cost
$79
91
70
63
Unit
Price
$115
103
On April 30, Bramble learns that the product has a net realizable value of $50 per unit. Determine the amount that ending
inventory will be valued at on the April statement of financial position.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education