Question
1. Using the same purchases and sales for Stratosphere Communications as in Question 7, assume the company uses the weighted-average cost flow assumption. What is
1. Using the same purchases and sales for Stratosphere Communications as in Question 7, assume the company uses the weighted-average cost flow assumption. What is the ending inventory dollar balance and cost of goods sold? You must show your work.
Stratosphere Communications has the following inventory transactions in its first year.
- On Jan. 6, purchased 1,000 units at $3
- On Mar. 23, purchased 2,000 units at $4
- On Jun. 27, sold 1,500 units at $9
- On Oct. 1, purchased 3,000 units at $5
- On Dec. 15, sold 2,500 units at $11
2. Using the same purchases and sales for Stratosphere Communications as in Question 7, assume the company uses the moving-average cost flow assumption. What is the ending inventory balance and cost of goods sold? You must show your work.
- On Jan. 6, purchased 1,000 units at $3
- On Mar. 23, purchased 2,000 units at $4
- On Jun. 27, sold 1,500 units at $9
- On Oct. 1, purchased 3,000 units at $5
- On Dec. 15, sold 2,500 units at $11
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Internal Auditing An Integrated Approach
Authors: Richard E. Cascarino
2nd Edition
0702172693, 978-0702172694
