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Please Help :( Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the
Please Help :(
Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31 Units Unit Cost Transactions 200 $24 Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 300 26 (350) b. Cash sale, April 1 ($40 each) c. Purchase on account, June 30 250 30 d. Cash sale, August 1 ($40 each) (50) TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the purchases have occurredStep by Step Solution
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