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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?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 12RE: Carla Company uses the perpetual inventory system. The following information is available for...
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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?
Transcribed Image Text: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?
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