Question

Oriole Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows: Units Per unit price Total Balance, 1/1/2017 340 $6.0 $2040 Purchase, 1/15/2017 170 ..6 1003 Purchase, 1/28/2017 170 ..6 1054 An end of the month (1/31/2017) inventory showed that 270 units were on hand. How many units did the company sell during January 2017?

Answer 1

Answer:

The number of units sold by the company during January 2017 is 410.

Explanation:

Note: The data in the question are merged together. They are therefore sorted before answering the question as follows:

                                Units         Per unit price         Total

Balance, 1/1/2017        340                  $6.0              $2040

Purchase, 1/15/2017    170                     ..6                  1003

Purchase, 1/28/2017    170                    ..6                  1054

The explanation of the answer is now given as follows:

Total units available for sales during January 2017 = 340 + 170 +170 = 680

Units on hand at end of the month (1/31/2017) = 270

Number of units sold by the company during January 2017 = Total units available for sales during January 2017 - Units on hand at end of the month (1/31/2017) = 680 - 270 = 410

Therefore, the number of units sold by the company during January 2017 is 410.