XYZ Inc. uses the average cost formula in a perpetual inventory system. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.) Jun 1 Jun 5 Jun 8 Jun 9 Beginning inventory Purchase Sale Purchase Jun 10 Sale Jun 22 Sale 20 units @ $19.00 per unit O cannot be determined. O higher. O the same. Olower. 100 units @ $22.00 per unit 70 units 80 units @ 22.31 per unit 25 units 40 units If XYZ Inc. was using the FIFO co formula instead of average, gross profit from the June 8 sale would be
XYZ Inc. uses the average cost formula in a perpetual inventory system. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.) Jun 1 Jun 5 Jun 8 Jun 9 Beginning inventory Purchase Sale Purchase Jun 10 Sale Jun 22 Sale 20 units @ $19.00 per unit O cannot be determined. O higher. O the same. Olower. 100 units @ $22.00 per unit 70 units 80 units @ 22.31 per unit 25 units 40 units If XYZ Inc. was using the FIFO co formula instead of average, gross profit from the June 8 sale would be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:XYZ Inc. uses the average cost formula in a perpetual inventory system.
(Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)
Jun 1
Jun 5
Jun 8
Jun 9
Beginning
inventory
Purchase
Sale
Purchase
Jun 10 Sale:
Jun 22 Sale:
20 units @ $19.00 per
unit
O cannot be determined.
O higher.
O the same.
O lower.
100 units @ $22.00
per unit
70 units
80 units@22.31 per
unit
25 units
40 units
If XYZ Inc. was using the FIFO con formula instead of average, gross profit from the June 8 sale would be
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Mu
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Mul
Qu
Mull
Que
Mult
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Multi
Que
Multi
Que
Multip
Ques
Multip
Ques
Multipl
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