Why is the answer 7? Question 7Fabulous Fay's is a boutique clothing store in San Diego, California. Fay's uses a perpetual inventory system. In March, Fay's purchased a type of swimweardesigned to be slimming to the wearer. The company purchased twenty suits of varying sizes for $40 each and priced them at $120 each. They sold outalmost immediately, so Fay purchased forty more suits in April for $40 each and sold thirty-eight of them for $130 each. Again in July, Fay made one morepurchase of twenty suits at $40 each and sold fifteen of them for $130 each. Fay decided not to put the rest of this inventory on sale at the end of thesummer, but to hold onto the items until cruise season started the following winter. She believed she could sell the remainder of this merchandise withouthaving to mark the items down. How many remaining suits did Fay have at the end of the summer?O 7O 15O 21/1O 5

The objective of the question is to determine the number of remaining suits at the end of the summer…

Answered: Question 7 Fabulous Fay's is a boutique…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 15 units for $20 each. Purchases on December 7 10 units @ $ 6.00 cost Purchases on December 14 20 units @ $12.00 cost Purchases on December 21 15 units @ $14.00 cost Required:Monson sells 15 units for $20 each on December 15. Of the units sold, eight are from the December 7 purchase and seven are from the December 14 purchase. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on specific identification.
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