Rona Company used the perpetual inventory system. The inventory transactions for August of the current year were as follows: Units Unit cost Total cost Aug. 1 Beginning 7 Purchase 20,000 10,000 20,000 15,000 20,000 40,000 3,000 4.00 80,000 42,000 86,000 4.20 10 Purchase 4.30 12 Sale 16 Purchase 4.60 92,000 20 Sale 28 Sale return ? The sale return relates to the August 20 sale. If the FIFO cost flow method is used, the sale return would be costed back into inventory at what unit cost?

Rona Company used the perpetual inventory system. The inventory transactions for August of the current year were as follows: Units Unit cost Total cost Aug. 1 Beginning 7 Purchase 20,000 10,000 20,000 15,000 20,000 40,000 3,000 4.00 80,000 42,000 86,000 4.20 10 Purchase 4.30 12 Sale 16 Purchase 4.60 92,000 20 Sale 28 Sale return ? The sale return relates to the August 20 sale. If the FIFO cost flow method is used, the sale return would be costed back into inventory at what unit cost?

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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