Answer:
It is known that in the periodic inventory, the accounting record of the stock of goods will occur only at the end of a certain period with the physical count of the existing quantities. Consider the following CVM information = 500.00; Initial Inventory = 700.00 and Purchases = 800.00. Applying the concept of periodic inventory and applying the formula for calculating the CMV, determine the value of the final stock.
ALTERNATIVES
Final stock of 2,000.00.
Final stock of 1,500.00.
Final stock of 1,300.00.
Final stock of 1,200.00.
Final stock of 1,000.00.
Final Stock (EF) = 1,000.00
Step-by-step explanation:
Alternative E - Final stock of 1,000.00.
Given That,
CMV = 500,00
Initial Stock (EI) = 700.00
Purchases (C) = 800.00
Final Stock (EF) = ?
Formula
CMV = Initial Stock (EI) + Purchases (C) - Final Stock (EF)
CMV = EI + C - EF
500 = 700 + 800 - EF
500.00 = 700.00 + 800.00 -X
500 = 1500- EF
500.00 = 1,500.00-X
EF = 1500-500
X = 1,000.00
EF = 1,000.00
Therefore, the final stock is 1,000
