Using the AVCO/Weighted Average Method, what is the value of ending inventory after accounting for the transaction at May 1? Fuller & Stona sells a variety of school supplies from a store located at Cross Roads Mall. The business began the second quarter (April to June) of 2009 with 2,000 pencil cases at a total cost of $200,000. The following transactions took place during the quarter. April 10 Purchased 3,000 pencil cases on account at a cost of $110 each. An additional air freight charge of $2, as well as customs import charge of $3 per case was incurred. It is customary for Fuller and Stona to include freight in as part of the cost of the units in their inventory record. April 30 During the month 1, 000 pencil cases were sold at a price of $160 each. May 1 A new batch of 3,200 cases was purchased on account at a cost of $352,000. May 15 15 of the pencil cases purchased on April 10 were found to be defective and returned to the supplier. May 28 The sales for May were 2,350 pencil cases at a unit selling price of $120. Мaу 31 10 of the pencil cases sold at the start of business on May 28 were returned by the customer. Select one: O a. 8,000 units @ $109 each O b. 7,200 units @$109.44each O c. 8,000 units at $109.50 each O d. 7,200 units @ $109.50 each
Using the AVCO/Weighted Average Method, what is the value of ending inventory after accounting for the transaction at May 1? Fuller & Stona sells a variety of school supplies from a store located at Cross Roads Mall. The business began the second quarter (April to June) of 2009 with 2,000 pencil cases at a total cost of $200,000. The following transactions took place during the quarter. April 10 Purchased 3,000 pencil cases on account at a cost of $110 each. An additional air freight charge of $2, as well as customs import charge of $3 per case was incurred. It is customary for Fuller and Stona to include freight in as part of the cost of the units in their inventory record. April 30 During the month 1, 000 pencil cases were sold at a price of $160 each. May 1 A new batch of 3,200 cases was purchased on account at a cost of $352,000. May 15 15 of the pencil cases purchased on April 10 were found to be defective and returned to the supplier. May 28 The sales for May were 2,350 pencil cases at a unit selling price of $120. Мaу 31 10 of the pencil cases sold at the start of business on May 28 were returned by the customer. Select one: O a. 8,000 units @ $109 each O b. 7,200 units @$109.44each O c. 8,000 units at $109.50 each O d. 7,200 units @ $109.50 each
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Using the AVCO/Weighted Average Method, what is the value of ending inventory after accounting for the transaction at May 1?
Fuller & Stona sells a variety of school supplies from a store located at Cross Roads Mall. The business began the
second quarter (April to June) of 2009 with 2,000 pencil cases at a total cost of $200,000. The following
transactions took place during the quarter.
April 10
Purchased 3,000 pencil cases on account at a cost of $110 each. An additional air freight charge
of $2, as well as customs import charge of $3 per case was incurred. It is customary for Fuller and
Stona to include freight in as part of the cost of the units in their inventory record.
April 30
During the month 1, 000 pencil cases were sold at a price of $160 each.
May 1
A new batch of 3,200 cases was purchased on account at a cost of $352,000.
15 of the pencil cases purchased on April 10 were found to be defective and returned to the
supplier.
May 15
May 28
The sales for May were 2,350 pencil cases at a unit selling price of $120.
May 31
10 of the pencil cases sold at
start of business on May 28 were returned by the customer.
Select one:
O a. 8,000 units @ $109 each
O b. 7,200 units @$109.44each
O c. 8,000 units at $109.50 each
O d. 7,200 units @ $109.50 each
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