Monami Company uses the weighted average method to determine the cost of its inventory. Monami recorded the following information pertaining to its inventory: UnitsUnits costTotal costBalance 1/1160,00060P9,600,000Sold on 1/15140,000 Purchased on 1/31 80,000907,200,000 What amount of inventory should Monami report in its January 31, 2021 statement of financial position using the perpetual inventory system? PerpetualA.P 8,400,000B.P 7,000,000C.P 8,400,000D.P 7,000,000

Name: Monami Company uses the weighted average method to determine the cost
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Description: Monami Company uses the weighted average method to determine the cost of its inventory. Monami recorded the following information pertaining to its inventory: UnitsUnits costTotal costBalance 1/1160,00060P9,600,000Sold on 1/15140,000 Purchased on

Perpetual inventory system records the inventory on real time basis.

Answered: Monami Company uses the weighted…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 7PA: Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to...

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Monami Company uses the weighted average method to determine the cost of its inventory. Monami recorded the following information pertaining to its inventory:

	Units	Units cost	Total cost
Balance 1/1	160,000	60	P9,600,000
Sold on 1/15	140,000
Purchased on 1/31	80,000	90	7,200,000

What amount of inventory should Monami report in its January 31, 2021 statement of financial position using the perpetual inventory system?

	Perpetual
A.	P 8,400,000
B.	P 7,000,000
C.	P 8,400,000
D.	P 7,000,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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