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Andrew [12]
2 years ago
5

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2021 are as follows:

Units Per unit price Total Beg. Balance, 1/1/21 200 $5.00 $1,000 Purchase, 1/15/21 100 5.30 530 Purchase, 1/28/21 100 5.50 550 An end of the month (1/31/21) inventory showed that 160 units were on hand. If the company uses FIFO, what is the value of the ending inventory? Group of answer choices $868 $848 $800 $832
Business
1 answer:
Lynna [10]2 years ago
6 0

Answer:

Ending inventory : $868

Explanation:

FIFO (First-In-First-Out) is a method of inventory valuation where the inventory that is received first is sold first. In other words, the earliest inventory is used first. This is common for perishable inventory such as fruits and vegetables which if not used fast, will be wasted.

01/01/21 : Beginning Inventory : 200 units x $5 = $1000

01/15/21 : Purchases : 100 units x $5.3 = $530

01/28/21 : Purchases : 100 units x $5.5 = $550

Total units = 200 + 100 + 100 = 400 units

Units sold = Total inventory available for sale - ending inventory

= 400 - 160 = 240 units.

COGS:

Beginning Inventory : 200 units x $5 = $1000

Purchases : 40 units x $5.3 = $212

Cost of goods sold : $1000 + $212 = $1212

Ending inventory:

Purchases : (100 - 40) units x $5.3 = $318

Purchases : 100 units x $5.5 = $550

Ending inventory : $318 + $550 = $868

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The speaker should seek and understand feedback from the speaker's audience

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Business communication is said to be effective when the speaker seek and understand feedback from it's audience. This helps management to effectively discharge their duties in the organization.

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How do u run a business
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Explanation:

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5 0
2 years ago
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On January 1, Year 1, Chaco Company sold $300,000 of 10% twenty-year bonds. Interest is payable semiannually on June 30 and Dece
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Answer:

The amount of effective interest expense that chaco will record in the first six months is $14,375

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8 0
3 years ago
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Owen expects to receive $ 25,000 at the end of next year from a trust fund. If a bank loans money at an interest rate of 7.1 %​,
Rzqust [24]

Answer: He could borrow from one of the following options:

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(b) $11,428

(d) $20,000

Explanation:

If Owen borrows $18,605

Bank interest rate = 7.1% of $18,605

=7.1/100 ×$18,605

=$1, 320.955

Owen's debt at his bank=

$18,605+$1,320.9555 =

$19,925.955

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If Owen borrows $11,428

Bank interest rate = 7.1% × $11,428

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Owen's debt at his bank=

$811.388+$11,428 =

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When Owen receives the trust fund of $25,000, he can pay his debt and still has $12,760.612 left with him.

If Owen borrows $20,000

Bank interest rate =7.1% of $20,000

=7.1/100 ×$20,000

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When Owen receives the trust fund of $25,000, he can pay his debt at his bank and still has $3,580 left with him.

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