Question: Festival Co values its inventory using the average cost method. At the beginning of January it held 110 units of inventory which cost $5 each.

Festival Co values its inventory using the average cost method. At the beginning of January it held 110 units of inventory which cost $5 each. The following inventory movements took place during January: 3 January Sold 95 units for $6 each 12 January Purchased 100 units for $5.50 each 15 January Purchased 50 units for $5.75 each 20 January Sold 80 units for $6 each At what amount should inventory be included in Festival Co's statement of financial position at 31 January?

$442.42

$453.90

$480.00

$470.08

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

1. Given the assumptions that Jantz and Palmer have made, prepare a proforma income statement and balance sheet for 2020. Assume that the line of credit provided by the bank will be needed for the...

tion 24. festival co values its inventory using the average cost method. at the beginning of january it held 110 units of inventory which cost $5 each. the following inventory movements took place...

Question 27 (10 points) Please look at the following information for Kelvin Inc. The company purchases its inventory from their supplier on account. All sales are also on account. Kelvin Inc. uses...

Hawk's Seeds Inc. sells bulk grass seed to local garden stores and landscapers. Hawk's Seeds Inc. produces financial statements semi-annually, uses the perpetual method of inventory management and...

please help Hawk's Seeds Inc. sells bulk grass seed to local garden stores and landscapers. Hawk's Seeds Inc. produces financial statements semi-annually, uses the perpetual method of inventory...

Hawk's Seeds Inc. sells bulk grass seed to local garden stores and landscapers. Hawk's Seeds Inc. produces financial statements semi-annually, uses the perpetual method of inventory management and...

During the year, ABC Inc determined ending inventory and COGS under FIFO cost flow and periodic inventory method. Other information available is as follows: Beginning inventory Purchase, January 12...

pls help me fast During the year, ABC Inc determined ending inventory and COGS under FIFO cost flow and periodic inventory method. Other information available is as follows: Unit Unit Cost 100 200...

On January 1st, 2022 Jills Inc. issues 1,000 6% 1,000 face value bonds at par with 10 years maturity. Interests are to be paid each June 30 and December 31. 1. Record the journal entries to be made...

Empire Optical Co., Ltd. is a chain of eyeglass outlets. Empire owns 100% of Class Glass Ltd., a competing chain that Empire established to serve a different market segment. To obtain the best deal...

In a healthy firm, would you expect current assets or current liabilities to be greater? Why or why not? Comment on how both values affect the current ratio.

SIMAD UNIVERSITY Class: BACC25 Subject: Islamic Accounting Instructions: a) Follow The Instructions. Midterm Exam Instructor: All Ibrahim Date: 6-4-2022 b) You Have 1.5 Hrs. To Complete This Test. c)...

3 How prevalent is the competences approach, and what is its perceived relevance in different countries?

3 How relevant is the competences approach for Andersen Consulting working outside Anglo-Saxon cultures?

2 What are the competences and capabilities required of new recruits to Andersen Consulting, given the need to maintain its strong corporate culture and ways of doing things?