Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A business had opening inventory of 300 units valued at $4.50 per unit on 1 May. The following receipts and issues were recorded in May:

A business had opening inventory of 300 units valued at $4.50 per unit on 1 May. The following receipts and issues were recorded in May:

2 May Issue 200 units

7 May Receipt 500 units @ $4.80 per unit

13 May Issue 400 units

20 May Receipt 500 units @ $5.00 per unit

28 May Issue 450 units

  1. What is the value of issues during the month using the FIFO method?

A $4,750

B $5,000

C $5,030

D $5,080

  1. What is the value of issues during the month using the LIFO method?

A $4,750

B $5,000

C $5,030

D $5,070

  1. What is the value of closing inventory? FIFO method LIFO method

A $1,180 $1,250

B $1,250 $1,180

C $1,250 $730

D $1,180 $730

  1. What is the value of closing inventory using the AVCO method?

A $1,180

B $1,232

C $1,250

D $1,282

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Financial System Reform In Eastern Europe And Asia

Authors: Robert W. McGee, Galina G. Preobragenskaya

2nd Edition

0387257098, 9780387257099

More Books

Students also viewed these Accounting questions

Question

8.1 Differentiate between onboarding and training.

Answered: 1 week ago

Question

8.3 Describe special considerations for onboarding.

Answered: 1 week ago