Rona Company used the perpetual inventory system. The inventory transactions for August of the current year were as follows: Units Unit cost Total cost Aug. 1 Beginning 7 Purchase 20,000 10,000 20,000 15,000 20,000 40,000 3,000 4.00 80,000 42,000 86,000 4.20 10 Purchase 4.30 12 Sale 16 Purchase 4.60 92,000 20 Sale 28 Sale return ? The sale return relates to the August 20 sale. If the FIFO cost flow method is used, the sale return would be costed back into inventory at what unit cost?

Rona Company used the perpetual inventory system. The inventory transactions for August of the current year were as follows: Units Unit cost Total cost Aug. 1 Beginning 7 Purchase 20,000 10,000 20,000 15,000 20,000 40,000 3,000 4.00 80,000 42,000 86,000 4.20 10 Purchase 4.30 12 Sale 16 Purchase 4.60 92,000 20 Sale 28 Sale return ? The sale return relates to the August 20 sale. If the FIFO cost flow method is used, the sale return would be costed back into inventory at what unit cost?

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 3PEA: Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual...

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