fiscal yea S900 of t ce of sup

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Assume that Barb City acquires S2,000 of inventory on May 1, 2022,
having held no inventory previously. On June 30, 2022, the end of Barb
City's fiscal year, a physical count shows $1,400 still in stock. During
2023, $900 of this inventory is used, resulting in a $500 remaining
balance of supplies on June 30, 2023.
How should Barb City account for these inventories? Show both the
purchase and consumption methods.
Transcribed Image Text:Assume that Barb City acquires S2,000 of inventory on May 1, 2022, having held no inventory previously. On June 30, 2022, the end of Barb City's fiscal year, a physical count shows $1,400 still in stock. During 2023, $900 of this inventory is used, resulting in a $500 remaining balance of supplies on June 30, 2023. How should Barb City account for these inventories? Show both the purchase and consumption methods.
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