Sentaro Company sells luxury clothing goods. The following information is available from the company's inventory record for Product X. Date Units Unit Cost January 1 Beginning inventory 1600 $18 January 5 Purchases 2600 $20 January 25 Purchases 2400 $21 February 16 Purchases 1000 $22 March 15 Purchases 1800 $23 A physical inventory on March 31, 2022, shows 2,500 units on hand. Instructions: a) Assume the company uses the FIFO method, calculate the amount assigned to ending inventory on hand at March 31, 2022. (Show computations) b) Assume the company uses the weighted average method, calculate the amount assigned to ending inventory on hand at March 31, 2022. (Show computations) c) Under which method would Net Income for the company be highest, and why?

Sentaro Company sells luxury clothing goods. The following information is available from the company's inventory record for Product X. Date Units Unit Cost January 1 Beginning inventory 1600 $18 January 5 Purchases 2600 $20 January 25 Purchases 2400 $21 February 16 Purchases 1000 $22 March 15 Purchases 1800 $23 A physical inventory on March 31, 2022, shows 2,500 units on hand. Instructions: a) Assume the company uses the FIFO method, calculate the amount assigned to ending inventory on hand at March 31, 2022. (Show computations) b) Assume the company uses the weighted average method, calculate the amount assigned to ending inventory on hand at March 31, 2022. (Show computations) c) Under which method would Net Income for the company be highest, and why?

Name: Sentaro Company sells luxury clothing goods. The following informatio
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Description: Sentaro Company sells luxury clothing goods. The following information is available from the company's inventory record for Product X. Date Units Unit Cost January 1Beginning inventory 1600 $18 January 5 Purchases 2600 $20 January 25 Purchases 2400

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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