The Divine Merchandising Corporation began March operations with merchandise inv

Question

The Divine Merchandising Corporation began March operations with merchandise inventory of 6 units, each of which cost $27. During March, Divine Merchandising made the following purchases: (1) March 4, 12 units @ $28 per unit, (2) March 15, 18 units @ $30 per unit, (3) March 26, 14 units @ $32 per unit. During March the Divine Merchandising Company sold the following units at a sales price of $48 per unit: March 6, 11 units, March 20, 17 units, and March 28, 12 units. Operating expenses in March were $640. The Company estimates its income taxes expense will be approximately 35% of income before taxes.

Using the FIFO inventory method, determine the dollar amount of purchases made in March.

$1,324

$1,486

$2,112

$2,400

$162

$1,324

$1,486

$2,112

$2,400

$162

Explanation / Answer

Purcahse details March Date units Rate Amt $ 4-Mar              12.00         28.00                   336.00 15-Mar              18.00         30.00                   540.00 26-Mar              14.00         32.00                   448.00 Total               1,324.00 So total purcahse in Mar = $   1,324.00 Option a is correct

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.