Question 4 A company just began business and made the following four inventory p
ID: 2401693 • Letter: Q
Question
Question 4
A company just began business and made the following four inventory purchases in June:
A physical count of merchandise inventory on June 30 reveals that there are 230 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
Question 5
Pharoah Company has the following inventory data:
A physical count of merchandise inventory on July 30 reveals that there are 62 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is
Explanation / Answer
Question 4 Correct Option (A) $ 1565
June 1
174
$1,150.00
June 10
232
$1,560.00
June 15
232
$1,584.00
June 28
174
$1,232.00
812
$5,526.00
Calculations
Total Units Purchased
812
Total Cost
$ 5,526.00
Average cost
$ 6.805
Units in Closing stock
230
Value of Closing Stock
(230*6.805)
$ 1,565.15
Question 5 Correct Option (C ) Cost of Goods Sold value $ 4887.
Finished Goods inventory
62 Units
Cost of Goods Sold (187 units Sold)
Purchased on
Units
Cost per unit
Inventory Value
22-Jul
25
$ 27.00
$ 675.00
7-Jul
162
$ 26.00
$ 4,212.00
Total Cost of Goods Sold
$ 4,887.00
Question 4 Correct Option (A) $ 1565
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