The Sportex Company, a diversified distribution outlet for sporting goods, purchases cartons of tennis balls from the
Question:
Sportex uses a perpetual inventory system.
Required:
1. Compute the cost of sales in January 2016 by using the FIFO method.
2. Compute the cost of ending inventory at January 31, 2016, assuming that Sportex uses the weighted- average cost method. (Round your calculation of the average cost to the nearest cent.)
3. Would the computations you made in (1) and (2) change if the company used a periodic inventory system? Explain.
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Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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