Widgets Company, a company that sells only one type of widget, had a September of 11 units, at $200/unit. Throughout the first two weeks, they purchased additional inventory in the amount of 5 widgets at $209/widget and 9 widgets at $220 each. During the third week, they sold 12 widgets at $420/each. If the replacement cost decreased to $205 in October, and the uring FIFO, what is the adjustment that should be made to the inventory account?
Widgets Company, a company that sells only one type of widget, had a September of 11 units, at $200/unit. Throughout the first two weeks, they purchased additional inventory in the amount of 5 widgets at $209/widget and 9 widgets at $220 each. During the third week, they sold 12 widgets at $420/each. If the replacement cost decreased to $205 in October, and the uring FIFO, what is the adjustment that should be made to the inventory account?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Widgets Company, a company that sells only one type of widget, had a beginning inventory in
September of 11 units, at $200/unit. Throughout the first two weeks, they purchased additional
inventory in the amount of 5 widgets at $209/widget and 9 widgets at $220 each. During the third week,
they sold 12 widgets at $420/each. If the replacement cost decreased to $205 in October, and the
company is using FIFO, what is the adjustment that should be made to the inventory account?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a09fa42-86ac-4b03-9854-5d278548d582%2F4234c8a3-bac6-412f-9685-885fdd361a0c%2F8ltldx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Widgets Company, a company that sells only one type of widget, had a beginning inventory in
September of 11 units, at $200/unit. Throughout the first two weeks, they purchased additional
inventory in the amount of 5 widgets at $209/widget and 9 widgets at $220 each. During the third week,
they sold 12 widgets at $420/each. If the replacement cost decreased to $205 in October, and the
company is using FIFO, what is the adjustment that should be made to the inventory account?
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