On April 1, a company purchased two units of inventory, A and B. The cost of...
On April 1, a company purchased two units of inventory, A and B. The cost of unit A was $620, and the cost of unit B was $575. On April 30, the company had not sold the inventory. The net realizable value of unit A was now $640 while the net realizable value of unit B was $495. The adjustment associated with the lower of cost and net realizable value on April 30 will be: 1. Cost of Goods Sold 60 Inventory 60 2. Inventory 60 Cost of Goods Sold 60 3. Cost of Goods Sold 80 Inventory 80 4. Inventory 80 Cost of Goods Sold 80
Homework Answers
Adjustment is needed for inventory B because net realizable value is less than its cost. 575 - 495 = $80
| Accounts | Debit | Credit |
| Cost of Goods Sold (575-495) | $80 | |
| Inventory | $80 |
Option 4. is correct answer.
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On April 1, a company purchased two units of inventory, A and B.
The cost of...
On April 1, a company purchased two units of Inventory, A and B. The cost of...
On April 1, a company purchased two units of Inventory, A and B. The cost of unit A was $625, and the cost of unit B was $565. On April 30, the company had not sold the Inventory. The net realizable value of unit A was now $650 while the net realizable value of unit B was $475. The adjustment associated with the lower of cost and net realizable value on April 30 will be: 65 1. Cost of Goods...
73) Ending inventory for Commodity X consists of 20 units. Under the FIFO method, the cost...
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15. On May. . Ace Bonding Company purchased inventory costing $2,000 on account. If credit terms...
15. On May. . Ace Bonding Company purchased inventory costing $2,000 on account. If credit terms are 2/10 30 and Ace pays for this inventory on May 30 which of the following records the payment using a perpetual inventory system? A Accounts Payable 2.000 2,000 1.900 40 2.000 2,000 B Accounts Payable Inventory Cash Accounts Payable Inventory Cash D. Cash Accounts Payable 1,960 2,000 16. A company has 10 units of inventory with a recorded cost of $60. If the...
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Pearl Company uses a periodic inventory system. For April, when the company sold 650 units, the...
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On April 1, a company purchased two units of Inventory, A and B. The cost of unit A was $625, and the cost of unit B was $565. On April 30, the company had not sold the Inventory. The net realizable value of unit A was now $650 while the net realizable value of unit B was $475. The adjustment associated with the lower of cost and net realizable value on April 30 will be: 65 1. Cost of Goods...
15. On May. . Ace Bonding Company purchased inventory costing $2,000 on account. If credit terms are 2/10 30 and Ace pays for this inventory on May 30 which of the following records the payment using a perpetual inventory system? A Accounts Payable 2.000 2,000 1.900 40 2.000 2,000 B Accounts Payable Inventory Cash Accounts Payable Inventory Cash D. Cash Accounts Payable 1,960 2,000 16. A company has 10 units of inventory with a recorded cost of $60. If the...
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Top Light Company uses a perpetual inventory system. The company began inventory at a cost of $12 per unit. During 2019, Top Light had the following purchases and sales of lamps PURCHASE/ SOLD UNITS &COST/UNIT OR SELLING PRICE/ UNIT 2,000 units@$18/unit 2,500 units @$30/ unit 3,500 units@$23/unit 2,000 units@$33/unit DATE Purchased Feb 13 Sold Purchased Sold April 24 June 6 October 18 Required: 1. Calculate the cost of goods sold and ending inventory using FIFO Inventory Balance Cost/ unit Cost...
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