Burisma Corp uses a perpetual inventory system. They take a physical count of its inventory at the end of each month. For the month ofJune of the current year, the accounting records provided the following information for one of its products:Book ValueUnitsUnit Costof Inventory$37,800$ 9.00$ 7.00$ 4.00Beginning inventory4,200Purchase, June 56,00042,000Purchase, June 186,00024,000Sale, June 25 ($30 per unit)(9,600)Ending inventory (before physical count)6,600The company uses FIFO inventory to account for its inventory. On June 30, Burisma counted its inventory and found that it only had5,100 units on hand. What is the cost of the inventory shrinkage that the Burisma will charge to COGS for the month of June?Numeric Response

Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

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 $ 9.00 $ 7.00 $ 4.00 Beginning inventory 4,200 $37,800 Purchase, June 5 6,000 6,000 42,000 Purchase, June 18 Sale, June 25 ($30 per unit) 24,000 (9,600) Ending inventory (before physical count) 6,600 The company uses FIFO inventory to account for its inventory. On June 30, Burisma counted its inventory and found that it only had 5,100 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 $ 9.00 $ 7.00 $ 4.00 Beginning inventory 4,200 $37,800 Purchase, June 5 6,000 6,000 42,000 Purchase, June 18 Sale, June 25 ($30 per unit) 24,000 (9,600) Ending inventory (before physical count) 6,600 The company uses FIFO inventory to account for its inventory. On June 30, Burisma counted its inventory and found that it only had 5,100 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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