Question
Smithson Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August year 1 is available: August
Smithson Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August year 1 is available:
August 1 Inventory on hand--500 @$10.00
August 10 Purchase --200 @$12.00
August 12 Purchase --500 @ $15.00
August 28 Sale--800 @ $30.00
What is the cost of goods available for sale if Smithson follows the FIFO method?
A) $14,900
B) $8,900
C) $15,100
D) $6,000
Smithson Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August year 1 is available:
August 1 Inventory on hand--500 @$10.00
August 10 Purchase --200 @$12.00
August 12 Purchase --500 @ $15.00
August 28 Sale--800 @ $30.00
What is the cost of goods available for sale if Smithson follows the FIFO method?
A) $14,900
B) $8,900
C) $15,100
D) $6,000
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
