Pearl Company uses the periodie inventory system to account for inventories. Information related to Pearl Company's inventory at October 31 is given below: October 1 Beginning inventory 400 units @ $9.60 = $ 3,840 8 Purchase 800 units @ $10.40 = 8.320 16 Purchase 600 units @ $10.80 = 6,480 24 Purchase 200 units @ $11.80 = 2.360 Total units and cost 2.000 units $21.000 Instructions 1. Show computations to value the ending inventory using the FIFO cost assumption if 600 units remain on hand at Ocetober 31. 2. Show computations to value the ending inventory using the weighted-average cost method if 600 units remain on hand at October 31
Pearl Company uses the periodie inventory system to account for inventories. Information related to Pearl Company's inventory at October 31 is given below: October 1 Beginning inventory 400 units @ $9.60 = $ 3,840 8 Purchase 800 units @ $10.40 = 8.320 16 Purchase 600 units @ $10.80 = 6,480 24 Purchase 200 units @ $11.80 = 2.360 Total units and cost 2.000 units $21.000 Instructions 1. Show computations to value the ending inventory using the FIFO cost assumption if 600 units remain on hand at Ocetober 31. 2. Show computations to value the ending inventory using the weighted-average cost method if 600 units remain on hand at October 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi, please answer attached question
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Transcribed Image Text:Pearl Company uses the periodic inventory system to account for inventories. Information related
to Pearl Company's inventory at October 31 is given below:
October 1 Beginning inventory
400 units @ $9.60 =
$ 3,840
8 Purchase
s00 units @ $10.40 =
8,320
16 Purchase
600 units @ $10.80 =
6,480
24 Purchase
200 units @ $11.80 =
2.360
Total units and cost
2.000 units
$21.000
Instructions
1. Show computations to value the ending inventory using the FIFO cost assumption if 600 units
remain on hand at October 31.
2. Show computations to value the ending inventory using the weighted-average cost method if
600 units remain on hand at October 31.
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