G-Mac Corporation reports the following inventory data for the month of January: A physical inventory count determined
Question:
G-Mac Corporation reports the following inventory data for the month of January:
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A physical inventory count determined that there were 15 units on hand at the end of January.
(a) Calculate the cost of the ending inventory and cost of goods sold under FIFO, assuming G-Mac uses a periodic inventory system. (Round your answers to the nearest cent.)
(b) Would your answers to part (a) differ if G-Mac used a perpetual inventory system? Explain.
(c) Five of the 15 units on hand that were purchased on January 15, were damaged and had no resale value. Prepare the entry to reflect the damaged inventory under FIFO and a periodic inventory system.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
a Ending Inventory 13 450 2 500 6850 Cost of goods sold Goods available fo...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
