You are provided with the following information for Amelia Inc., which purchases its inventory from a supplier

Question:

You are provided with the following information for Amelia Inc., which purchases its inventory from a supplier for cash and has only cash sales. Amelia uses the average cost formula in a perpetual inventory system. Increased competition has recently reduced the price of the product.
You are provided with the following information for Amelia Inc.,

Instructions
(a) Prepare all journal entries for the month of April for Amelia, the buyer. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)
(b) Determine the ending inventory amount for Amelia.
(c) On April 30, Amelia learns that the product has a net realizable value of $50 per unit. What amount should ending inventory be valued at on the April statement of financial position?

Ending Inventory
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 =...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

Question Posted: