Question
The Boxwood Company sells blankets for $39 each. The following was taken from the inventory records during May. The company had no beginning inventory on
The Boxwood Company sells blankets for $39 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
| Date | Blankets | Units | Cost |
| May 3 | Purchase | 10 | $17 |
| 10 | Sale | 4 | |
| 17 | Purchase | 15 | $18 |
| 20 | Sale | 8 | |
| 23 | Sale | 3 | |
| 30 | Purchase | 12 | $23 |
Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the FIFO inventory cost method.
a.$246
b.$212
c.$142
d.$138
Using the lower of cost or market, what should the total inventory value be for the following items:
| Item | Inventory Quantity | Cost per Unit | Market Value per Unit | Total Cost Price | Total Market Price | Lower of Cost or Market |
| A | 220 | $4 | $7 | $880 | $1,540 | $ |
| B | 109 | $14 | $11 | $1,526 | $1,199 | $ |
| C | 60 | $21 | $23 | $1,260 | $1,380 | $ |
| $ |
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Interpreting and Analyzing Financial Statements
Authors: Karen P. Schoenebeck, Mark P. Holtzman
6th edition
132746247, 978-0132746243
