Question

Effie company uses a periodic inventory system. details for the inventory account for the month of january, 2013 are as follows: units per unit price total balance, 1/1/13 200 $5.00 $1,000 purchase, 1/15/13 100 5.30 530 purchase, 1/28/13 100 5.50 550 an end of the month (1/31/13) inventory showed that 140 units were on hand. how many units did the company sell during january, 2013?

Answer 1

Answer: 260

Periodic inventory is a system of inventory in which updates on inventory are made on a periodic basis. If purchases made by Effie company in January are (200+100+100=400) and units on hand at the end of the month is 140, then the company sales for the month is (400-140) or 260.