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Question: 6. Inventory is reported in the financial statements at a. cost. b. market c. the higher-of-cost-or-market. d. the lower-of-cost-or-market. Jason’s Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows: Date Purchases Jan. 14 Sales 17 375 @ 14 250 @ $10 25 250 @ $11 260 @ $16 Jason does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is: a. $3,285. b. $3,650. c. $3,900. d. $4,015. Laurel’s Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows: Date Purchases Sales Jan. 14 375 @ $14 250 @ $10 25 250 $11 260 @ $16 Laurel does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the LIFO method is: a. $3,285. b. $3,650 C. $3,900. d. $4,015.–Free Chegg Question Answer

Transcribed text From Image: 6. Inventory is reported in the financial statements at a. cost. b. market c. the higher-of-cost-or-market. d. the lower-of-cost-or-market. Jason's Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows: Date Purchases Jan. 14 Sales 17 375 @ 14 250 @ $10 25 250 @ $11 260 @ $16 Jason does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is: a. $3,285. b. $3,650. c. $3,900. d. $4,015. Laurel's Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows: Date Purchases Sales Jan. 14 375 @ $14 250 @ $10 25 250 $11 260 @ $16 Laurel does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the LIFO method is: a. $3,285. b. $3,650 C. $3,900. d. $4,015.

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Answer

Answer- 6)- Inventory is reported in the financial statements at = the lower-of-cost-or-market.

Answer- 7)- The cost of ending inventory at January 31, under the FIFO method is = $3900.

Explanation-

FIFO Method
Goods purchasedCost of goods soldInventory balance
Date# of unitsCost per unit# of units soldCost per unitCost of goods sold# of unitsCost per unitInventory balance
Jan-0150094500
Jan-143759337512591125
Jan-172501012591125
250102500
Jan-252501112591125
250102500
250112750
Jan-2912591125115101150
135101350250112750
Totals3653900

Answer- 7)- The cost of ending inventory at January 31, under the LIFO method is = $3525.

Explanation-

LIFO Method
Goods purchasedCost of goods soldInventory balance
Date# of unitsCost per unit# of units soldCost per unitCost of goods sold# of unitsCost per unitInventory balance
Jan-0150094500
Jan-143759337512591125
Jan-172501012591125
250102500
Jan-252501112591125
250102500
250112750
Jan-2925011275012591125
1010100240102400
Totals3653525


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