Burisma Corp uses a perpetual inventory system. They take a physical countof its inventory at the end of each month. For the month of June of thecurrent year, the accounting records provided the following information forone of its products:Book ValueUnitsUnit CostofInventory$ 58,800$ 6.00$10.00$19.00Beginning inventory9,800Purchase, June 514,000140,00014,0(22,400)Purchase, June 1800Sale, June 25 ($30 per unit)Ending inventory (before physicalcount)15,400The company uses FIFO inventory to account for its inventory. On June 30,Burisma counted its inventory and found that it only had 13,100 units onhand. What is the cost of the inventory shrinkage that the Burisma willcharge to COGS for the month of June?

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Description: Burisma Corp uses a perpetual inventory system. They take a physical countof its inventory at the end of each month. For the month of June of thecurrent year, the accounting records provided the following information forone of its products:Book Valu

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Burisma Corp uses a perpetual inventory system. They take a physical count of its inventory at the end of each month. For the month of June of the current year, the accounting records provided the following information for one of its products: Book Value Units Unit Cost of Inventory $ 58,800 $ 6.00 $10.00 $19.00 Beginning inventory 9,800 Purchase, June 5 14,000 140,000 Purchase, June 18 14,000 266,000 Sale, June 25 ($30 per unit) (22,400) Ending inventory (before physical count) 15,400 The company uses FIFO inventory to account for its inventory. On June 30, Burisma counted its inventory and found that it only had 13,100 units on hand. What is the cost of the inventory shrinkage that the Burisma will charge to COGS for the month of June?

Burisma Corp uses a perpetual inventory system. They take a physical count of its inventory at the end of each month. For the month of June of the current year, the accounting records provided the following information for one of its products: Book Value Units Unit Cost of Inventory $ 58,800 $ 6.00 $10.00 $19.00 Beginning inventory 9,800 Purchase, June 5 14,000 140,000 Purchase, June 18 14,000 266,000 Sale, June 25 ($30 per unit) (22,400) Ending inventory (before physical count) 15,400 The company uses FIFO inventory to account for its inventory. On June 30, Burisma counted its inventory and found that it only had 13,100 units on hand. What is the cost of the inventory shrinkage that the Burisma will charge to COGS for the month of June?

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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