Rami Electronics maintains inventory of a popular component and uses the FIFO method for inventory valuation. On April 1, the company had 200 units in beginning inventory valued at $15 per unit. During April, the company made two purchases: 300 units at $18 per unit on April 10, and 150 units at $20 per unit on April 20. At the end of the month, a physical count revealed that 250 units remained in inventory. The accounting department needs to determine the cost of goods sold for April and the ending inventory value under the FIFO method.
Rami Electronics maintains inventory of a popular component and uses the FIFO method for inventory valuation. On April 1, the company had 200 units in beginning inventory valued at $15 per unit. During April, the company made two purchases: 300 units at $18 per unit on April 10, and 150 units at $20 per unit on April 20. At the end of the month, a physical count revealed that 250 units remained in inventory. The accounting department needs to determine the cost of goods sold for April and the ending inventory value under the FIFO method.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...
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Rami Electronics maintains inventory of a popular component and uses the FIFO method for inventory valuation. On April 1, the company had 200 units in beginning inventory valued at $15 per unit. During April, the company made two purchases: 300 units at $18 per unit on April 10, and 150 units at $20 per unit on April 20. At the end of the month, a physical count revealed that 250 units remained in inventory. The accounting department needs to determine the cost of goods sold for April and the ending inventory value under the FIFO method.
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