Rally Wheels, Inc. had the following balances and transactions during 2018: Beginning Merchandise Inventory as of January 1, 2018200 units at $71March 10Sold 50 unitsJune 10Purchased 800 units at $76October 30Sold 175 units What would the company's ending merchandise inventory cost and cost of goods sold be on December 31, 2018 if the perpetual inventory system and the last-in, first-out inventory costing method are used?

under last in , first out method. Most recent Purchases are used in cost of goods sold or in…

Answered: Rally Wheels, Inc. had the following…

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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Rally Wheels, Inc. had the following balances and transactions during 2018:

Beginning Merchandise Inventory as of January 1, 2018	200 units at $71
March 10	Sold 50 units
June 10	Purchased 800 units at $76
October 30	Sold 175 units

What would the company's ending merchandise inventory cost and cost of goods sold be on December 31, 2018 if the perpetual inventory system and the last-in, first-out inventory costing method are used?

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