Find the dollar value of Company M’s ending inventory.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 5, Problem 1MCQ

To determine

Find the dollar value of Company M’s ending inventory.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (a): $2,940.

Explanation of Solution

First-in-First-Out (FIFO): In this method, items purchased initially are sold first. Therefore, the value of the ending inventory contains the recent cost for the remaining unsold items.

Find the dollar value of Company M’s ending inventory:

Date	Goods Purchased		Cost of Goods Sold		Ending Inventory

July-01	beginning balance				75 units @$25	$ 1,875
July-03	348 units @ $27	$ 9,396			75 units @$25	$ 11,271
					348 units @ $27	$ 11,271
July-08			75 units @ $25	$ 7,950	123 units @ $27	$ 3,321
			225 units @ $27	$ 7,950	123 units @ $27	$ 3,321
July-15	257 units @ $28	$ 7,196			123 units @ $27	$ 10,517
					257 units @ $28	$ 10,517
July-23			123 units @ $27	$ 7,577	105 units @ $28	$ 2,940
			152 units @ $28	$ 7,577	105 units @ $28	$ 2,940

Table (1)

The above calculation is matching with the option (a) $2,940. Hence, option (a) is the correct answer, options (b) (c) and (d) are incorrect.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Frameworks isplated checks

Accounting problem

A company had been selling its product for $40 per unit, but recently lowered the selling price to $28 per unit. The company's current inventory consists of 275 units purchased at $35 per unit. The market value of this inventory is currently $25 per unit. At what amount should the company's inventory be reported on the balance sheet?

Answer 2

Question

Chapter 5, Problem 1MCQ

To determine

Find the dollar value of Company M’s ending inventory.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (a): $2,940.

Explanation of Solution

First-in-First-Out (FIFO): In this method, items purchased initially are sold first. Therefore, the value of the ending inventory contains the recent cost for the remaining unsold items.

Find the dollar value of Company M’s ending inventory:

Date	Goods Purchased		Cost of Goods Sold		Ending Inventory

July-01	beginning balance				75 units @$25	$ 1,875
July-03	348 units @ $27	$ 9,396			75 units @$25	$ 11,271
					348 units @ $27	$ 11,271
July-08			75 units @ $25	$ 7,950	123 units @ $27	$ 3,321
			225 units @ $27	$ 7,950	123 units @ $27	$ 3,321
July-15	257 units @ $28	$ 7,196			123 units @ $27	$ 10,517
					257 units @ $28	$ 10,517
July-23			123 units @ $27	$ 7,577	105 units @ $28	$ 2,940
			152 units @ $28	$ 7,577	105 units @ $28	$ 2,940

Table (1)

The above calculation is matching with the option (a) $2,940. Hence, option (a) is the correct answer, options (b) (c) and (d) are incorrect.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 5, Problem 1MCQ

To determine

Find the dollar value of Company M’s ending inventory.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (a): $2,940.

Explanation of Solution

First-in-First-Out (FIFO): In this method, items purchased initially are sold first. Therefore, the value of the ending inventory contains the recent cost for the remaining unsold items.

Find the dollar value of Company M’s ending inventory:

Date	Goods Purchased		Cost of Goods Sold		Ending Inventory

July-01	beginning balance				75 units @$25	$ 1,875
July-03	348 units @ $27	$ 9,396			75 units @$25	$ 11,271
					348 units @ $27	$ 11,271
July-08			75 units @ $25	$ 7,950	123 units @ $27	$ 3,321
			225 units @ $27	$ 7,950	123 units @ $27	$ 3,321
July-15	257 units @ $28	$ 7,196			123 units @ $27	$ 10,517
					257 units @ $28	$ 10,517
July-23			123 units @ $27	$ 7,577	105 units @ $28	$ 2,940
			152 units @ $28	$ 7,577	105 units @ $28	$ 2,940

Table (1)

The above calculation is matching with the option (a) $2,940. Hence, option (a) is the correct answer, options (b) (c) and (d) are incorrect.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 5, Problem 1MCQ

To determine

Find the dollar value of Company M’s ending inventory.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (a): $2,940.

Explanation of Solution

First-in-First-Out (FIFO): In this method, items purchased initially are sold first. Therefore, the value of the ending inventory contains the recent cost for the remaining unsold items.

Find the dollar value of Company M’s ending inventory:

Date	Goods Purchased		Cost of Goods Sold		Ending Inventory

July-01	beginning balance				75 units @$25	$ 1,875
July-03	348 units @ $27	$ 9,396			75 units @$25	$ 11,271
					348 units @ $27	$ 11,271
July-08			75 units @ $25	$ 7,950	123 units @ $27	$ 3,321
			225 units @ $27	$ 7,950	123 units @ $27	$ 3,321
July-15	257 units @ $28	$ 7,196			123 units @ $27	$ 10,517
					257 units @ $28	$ 10,517
July-23			123 units @ $27	$ 7,577	105 units @ $28	$ 2,940
			152 units @ $28	$ 7,577	105 units @ $28	$ 2,940

Table (1)

The above calculation is matching with the option (a) $2,940. Hence, option (a) is the correct answer, options (b) (c) and (d) are incorrect.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1MCQ

To determine

Find the dollar value of Company M’s ending inventory.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (a): $2,940.

Explanation of Solution

First-in-First-Out (FIFO): In this method, items purchased initially are sold first. Therefore, the value of the ending inventory contains the recent cost for the remaining unsold items.

Find the dollar value of Company M’s ending inventory:

Date	Goods Purchased		Cost of Goods Sold		Ending Inventory

July-01	beginning balance				75 units @$25	$ 1,875
July-03	348 units @ $27	$ 9,396			75 units @$25	$ 11,271
					348 units @ $27	$ 11,271
July-08			75 units @ $25	$ 7,950	123 units @ $27	$ 3,321
			225 units @ $27	$ 7,950	123 units @ $27	$ 3,321
July-15	257 units @ $28	$ 7,196			123 units @ $27	$ 10,517
					257 units @ $28	$ 10,517
July-23			123 units @ $27	$ 7,577	105 units @ $28	$ 2,940
			152 units @ $28	$ 7,577	105 units @ $28	$ 2,940

Table (1)

The above calculation is matching with the option (a) $2,940. Hence, option (a) is the correct answer, options (b) (c) and (d) are incorrect.

Answer 6

Chapter 5, Problem 1MCQ

To determine

Find the dollar value of Company M’s ending inventory.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (a): $2,940.

Explanation of Solution

First-in-First-Out (FIFO): In this method, items purchased initially are sold first. Therefore, the value of the ending inventory contains the recent cost for the remaining unsold items.

Find the dollar value of Company M’s ending inventory:

Date	Goods Purchased		Cost of Goods Sold		Ending Inventory

July-01	beginning balance				75 units @$25	$ 1,875
July-03	348 units @ $27	$ 9,396			75 units @$25	$ 11,271
					348 units @ $27	$ 11,271
July-08			75 units @ $25	$ 7,950	123 units @ $27	$ 3,321
			225 units @ $27	$ 7,950	123 units @ $27	$ 3,321
July-15	257 units @ $28	$ 7,196			123 units @ $27	$ 10,517
					257 units @ $28	$ 10,517
July-23			123 units @ $27	$ 7,577	105 units @ $28	$ 2,940
			152 units @ $28	$ 7,577	105 units @ $28	$ 2,940

Table (1)

The above calculation is matching with the option (a) $2,940. Hence, option (a) is the correct answer, options (b) (c) and (d) are incorrect.

Answer 7

Chapter 5, Problem 1MCQ

To determine

Find the dollar value of Company M’s ending inventory.

Answer 8

Expert Solution & Answer

Answer to Problem 1MCQ

Option (a): $2,940.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

First-in-First-Out (FIFO): In this method, items purchased initially are sold first. Therefore, the value of the ending inventory contains the recent cost for the remaining unsold items.

Find the dollar value of Company M’s ending inventory:

Date	Goods Purchased		Cost of Goods Sold		Ending Inventory

July-01	beginning balance				75 units @$25	$ 1,875
July-03	348 units @ $27	$ 9,396			75 units @$25	$ 11,271
					348 units @ $27	$ 11,271
July-08			75 units @ $25	$ 7,950	123 units @ $27	$ 3,321
			225 units @ $27	$ 7,950	123 units @ $27	$ 3,321
July-15	257 units @ $28	$ 7,196			123 units @ $27	$ 10,517
					257 units @ $28	$ 10,517
July-23			123 units @ $27	$ 7,577	105 units @ $28	$ 2,940
			152 units @ $28	$ 7,577	105 units @ $28	$ 2,940