Dobler Company Uses a Periodic Inventory System An End of the Month (1/31/2017) Inventory Showed That 240

question 11

Multiple Choice

Dobler Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows: $\begin{array}{llrr}&\text { Units }&\text { Per unit price }&\text { Total }\\\text { Balance, } 1 / 1 / 2017 & 300 & \$ 5.00 & \$ 1.500 \\\text { Purchase, } 1 / 15 / 2017 & 150 & 5.30 & 795 \\\text { Purchase, } 1 / 28 / 2017 & 150 & 5.50 & 825\end{array}$ An end of the month (1/31/2017) inventory showed that 240 units were on hand. If the company uses FIFO, what is the value of the ending inventory?

• A)$1,320
• B)$1,200
• C)$1,302
• D)$1,818

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of shareholders in the company.

Long-term Notes Payable

Debt obligations with a repayment period extending beyond one year, used usually for significant purchases or investments.

Accounts Receivable

Company receivables from goods or services provided to customers, pending payment.

Inventory

The sum of all goods, materials, and finished products held by a company for the purpose of sale in the regular course of business.