FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Calculate the price index for 2025. Assume that the December 2, 2025, purchase cost is the current cost of inventory. (The beginning inventory is the base layer priced at $21 per unit)
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Crane Corporation began operations on December 1, 2024. The only inventory transaction in 2024 was the purchase of inventory on
December 10, 2024, at a cost of $21 per unit. Non of this inventory was sold in 2024. Relevant information is as follows.
Ending inventory units
December 31, 2024
December 31, 2025, by purchase date
110
December 2, 2025
July 20, 2025
110
50
160
During the year, the following purchases and sales were made.
Purchases
Sales
March 15
310 units at $25
April 10
210
July 20
310 units at 26
August 20
310
September 4
210 units at
29
November 18
160
December 2
110 units at
32
December 12
210
The company uses the periodic inventory method.
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