Question
XYZ Company uses a periodic inventory system. The beginning balance of inventory and the purchases made by XYZ during the month of July are given
XYZ Company uses aperiodic inventory system.The beginning balance of inventory and the purchases made by XYZ during the month of July are given below:
Date
Description
Units
Unit cost
Total cost
July 01
Beginning inventory
500
$20
$10,000
July 18
Inventory purchased
800
$24
$19,200
July 25
Inventory purchased
700
$26
$18,200
Total
2,000
$47,400
The XYZ Company sold 1,400 units during the month of July.
Required:Compute inventory on 31st July and cost of goods sold for the month of July using FIFO inventory costing method:
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
