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In order to ensure that the inventory values presented on the statement of financial position at year end reflect the true economic benefits of the
In order to ensure that the inventory values presented on the statement of financial position at year end reflect the true economic benefits of the inventory, the company may need to O have an inventory fire sale. O use a perpetual inventory system. O use a JIT system. O prepare an inventory writedown. A company had the following inventory activity during June: Units Unit Cost Total Cost Beginning inventory 450 $9.50 $4,275 Purchases: June 5 1,500 10 15,000 June 13 900 10.25 9,225 Sales: June 8 1,100 June 24 600 If the company is using a weighted average cost formula and a periodic system, what is the ending inventory closest to? O $11,925 O $11,415 O $11,500 O $11,585 Physical inventory counts are only necessary for periodic systems. O only necessary for perpetual systems. necessary for periodic and perpetual systems as part of internal control. O not necessary at all if a company has an appropriate accounting system
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