Nine Company uses FIFO to account for inventory. Nine Company's inventory consists of two products: Product A
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Question:
Nine Company uses FIFO to account for inventory. Nine Company's inventory consists of two products: Product A and Product B. For each product, costs to sell include sales commissions of 10% of the selling price and shipping costs equal to 5% of the selling price. The accounting system revealed the following information as of December 31, 2018.
Product | Units | Cost per unit | Price per unit |
A | 1,000 | $40 | $60 |
B | 1,500 | 90 | 100 |
Determine the amount that Nine Company should report for inventory for Product A as of December 31, 2018.
Related Book For
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
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