Asked by Queen Owusu on Jul 28, 2024
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Elly Company uses a periodic inventory system. Details for the inventory account for the month of January 2016 are as follows: Units Per unit price Total Balance, 1/1/16200$5.00$1,000 Purchase, 1/15/161005.30530 Purchase, 1/28/161005.50550\begin{array} { l c c r } & \text { Units } & \text { Per unit price } & \text { Total } \\\hline\text { Balance, } 1 / 1 / 16 & 200 & \$ 5.00 & \$ 1,000 \\\text { Purchase, } 1 / 15 / 16 & 100 & 5.30 & 530 \\\text { Purchase, } 1 / 28 / 16 & 100 & 5.50 & 550\end{array} Balance, 1/1/16 Purchase, 1/15/16 Purchase, 1/28/16 Units 200100100 Per unit price $5.005.305.50 Total $1,000530550 An end of the month (1/31/16) inventory showed that 150 units were on hand. How many units did the company sell during January 2016?
A) 50
B) 150
C) 200
D) 250
Periodic Inventory System
A method of inventory valuation for financial reporting purposes where a physical count of the inventory is performed at specific intervals and the cost of goods sold is calculated at the end.
Units Sold
The total quantity of products sold by a company during a specific time period, used to assess sales performance.
Units
A measure of quantity or volume in accounting, production, or inventory.
- Establish the closing inventory amount and the cost of goods sold making use of varying inventory costing approaches (FIFO, LIFO, average cost).
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Learning Objectives
- Establish the closing inventory amount and the cost of goods sold making use of varying inventory costing approaches (FIFO, LIFO, average cost).
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