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INVENTORY COST FLOWS - CONTINUED a) Periodic System with a FIFO cost flow assumption.

INVENTORY COST FLOWS - CONTINUED a) Periodic System with a FIFO cost flow assumption.

FINANCIAL ACCOUNTING
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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INVENTORY COST FLOWS Candy Company has approached you to help decide what type of inventory system it should use (perpetual vs. periodic) and what cost flow assumption to adopt (FIFO vs. Average Cost). Inventory written off due to shrinkage is expensed to cost of goods sold. During September/ 2022 the following inventory transactions occurred; Date Sept 1 Sept 8 Sept 10 Sept 14 Sept 28 Description Opening balance Purchase #1 Sale #1 Purchase #2 Sale #2 Quantity (#units) 100 850 300 150 600 At September 30th, a physical inventory count showed 180 units of inventory on hand. INVENTORY COST FLOWS - CONTINUED $ per Unit $13.50 $15.00 $ 25.00 $17.50 $30.00 a) Periodic System with a FIFO cost flow assumption.
Transcribed Image Text:INVENTORY COST FLOWS Candy Company has approached you to help decide what type of inventory system it should use (perpetual vs. periodic) and what cost flow assumption to adopt (FIFO vs. Average Cost). Inventory written off due to shrinkage is expensed to cost of goods sold. During September/ 2022 the following inventory transactions occurred; Date Sept 1 Sept 8 Sept 10 Sept 14 Sept 28 Description Opening balance Purchase #1 Sale #1 Purchase #2 Sale #2 Quantity (#units) 100 850 300 150 600 At September 30th, a physical inventory count showed 180 units of inventory on hand. INVENTORY COST FLOWS - CONTINUED $ per Unit $13.50 $15.00 $ 25.00 $17.50 $30.00 a) Periodic System with a FIFO cost flow assumption.
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