Addison, Inc. uses a perpetual inventory system. The following is information ab
ID: 2370742 • Letter: A
Question
Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:Sep. 1 Inventory 20 units at $20 4 Sold 10 units 10 Purchased 30 units at $25 17 Sold 20 units 30 Purchased 10 units at $30
If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is Answer a. $650 b. $750 c. $700 d. $800 Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:
Sep. 1 Inventory 20 units at $20 4 Sold 10 units 10 Purchased 30 units at $25 17 Sold 20 units 30 Purchased 10 units at $30
If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is $650 $750 $700 $800 Sep. 1 Inventory 20 units at $20 4 Sold 10 units 10 Purchased 30 units at $25 17 Sold 20 units 30 Purchased 10 units at $30
Explanation / Answer
If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is
=10 units at $30+20 units at $25 = $800
Answer:
d.$800