Question
9. WellSurf Ltd sells one type of surfboard and has the following inventory transactions for the half year ending 31 December 2020: Units Price/unit Total
9. WellSurf Ltd sells one type of surfboard and has the following inventory transactions for the half year ending 31 December 2020:
Units
Price/unit
Total
Opening inventory at 1 July 2020
500
$250
$125,000
Purchases on 1 August 2020
1000
$260
$260,000
Purchases on 15 October 2020
500
$290
$145,000
Purchases on 20 December 2020
900
$300
$270,000
Total
2900
$800,000
During the year, WellSurf Ltd sells 2500 surfboards. The company uses the periodic system to manage inventory.
What is the ending inventory at 31 December 2020 using the FIFO method?
a.
$104 000.
b.
$145 000.
c.
$120 000.
d.
$296 000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
