Question
You are given the following information for Amelia Company. All transactions are settled in cash. Amelia uses a perpetual inventory system and the weighted average
You are given the following information for Amelia Company. All transactions are settled in cash. Amelia uses a perpetual inventory system and the weighted average cost formula. Increased competition has reduced the price of the product.
| Date | Transaction | Units | Unit Price | |||||||
| July 1 | Beginning inventory | 25 | $10 | |||||||
| 5 | Purchase | 55 | 9 | |||||||
| 8 | Sale | (70 | ) | 15 | ||||||
| 10 | Purchase | 55 | 8 | |||||||
| 20 | Sale | (55 | ) | 12 | ||||||
| 25 | Purchase | 10 | 7 | |||||||
What if Amelia had used FIFO instead of weighted average? How would this affect the July 31 ending inventory on the balance sheet compared with weighted average?
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A Communication Audit Handbook Helping Organizations Communicate
Authors: Seymour Hamilton
1st Edition
0801300614, 978-0801300615
