Kahn Distribution Limited (KDL) purchases inventory items for resale. At the beginning of 2009, Kahn had no inventory on hand. During 2009, Kahn had the following transactions: Inventory Purchases First quarter 2,000 units at $40 per unit Second quarter 1,500 units at $41 per unit Th ird quarter 2,200 units at $43 per unit Fourth quarter 1,900 units at $45 per unit Total 7,600 units at a total cost of $321,600 KDL sold 5,600 units of inventory during the year at $50 per unit, and received cash. KDL determines that there were 2,000 remaining units of inventory and specifi cally identifi es that 1,900 were those purchased in the fourth quarter and 100 were purchased in the third quarter. What are the revenue and expense associated with these transactions during 2009 based on specifi c identifi cation of inventory items as sold or remaining in inventory?
Kahn Distribution Limited (KDL) purchases inventory items for resale. At the beginning of 2009, Kahn had no inventory on hand. During 2009, Kahn had the following transactions: Inventory Purchases First quarter 2,000 units at $40 per unit Second quarter 1,500 units at $41 per unit Th ird quarter 2,200 units at $43 per unit Fourth quarter 1,900 units at $45 per unit Total 7,600 units at a total cost of $321,600 KDL sold 5,600 units of inventory during the year at $50 per unit, and received cash. KDL determines that there were 2,000 remaining units of inventory and specifi cally identifi es that 1,900 were those purchased in the fourth quarter and 100 were purchased in the third quarter. What are the revenue and expense associated with these transactions during 2009 based on specifi c identifi cation of inventory items as sold or remaining in inventory?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
