Oriental Company uses the perpetual system. The following information has been extracted from the records about one product: DATE UNITS UNIT COST TOTAL COST Panuary 1 January 6 February 5 Beg Inventory 8,000 3,000 10,000 70 70.5 560,000 211,500 Purchase Sale 808,500 58,800 March 5 Purchase 11,000 73.5 March 8 Purchase Return 800 73.5

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sale
February 5
March 5
10,000
11,000
Purchase
73.5
808,500
58,800
March 8
Purchase Return 800
73.5
April 10
April 30
Sale
7,000
Sales return
300
If the FIFO cost flow method is used, what is the cost of the inventory?
Transcribed Image Text:Sale February 5 March 5 10,000 11,000 Purchase 73.5 808,500 58,800 March 8 Purchase Return 800 73.5 April 10 April 30 Sale 7,000 Sales return 300 If the FIFO cost flow method is used, what is the cost of the inventory?
Oriental Company uses the perpetual system. The following information has been
extracted from the records about one product:
DATE
UNITS
UNIT COST TOTAL COST
Beg Inventory 8,000
Purchase
70
January 1
January 6
February 5
560,000
3,000
70.5
211,500
10,000
11,000
Sale
March 5
Purchase
73.5
808,500
March 8
Purchase Return 800
73.5
58,800
Transcribed Image Text:Oriental Company uses the perpetual system. The following information has been extracted from the records about one product: DATE UNITS UNIT COST TOTAL COST Beg Inventory 8,000 Purchase 70 January 1 January 6 February 5 560,000 3,000 70.5 211,500 10,000 11,000 Sale March 5 Purchase 73.5 808,500 March 8 Purchase Return 800 73.5 58,800
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