In the First Month of Operations, Santos Company Made Three

question 227

Essay

In the first month of operations, Santos Company made three purchases of merchandise in the following sequence: (1) 200 units at $6, (2) 300 units at $7, and (3) 400 units at $8. Assuming there are 300 units on hand, compute the cost of the ending inventory under (1) the FIFO method and (2) the average-cost method. Santos uses a periodic inventory system.

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Definitions:

Rehearsal

A practice session in preparation for a public performance (as of a play or speech) or a process in memory retention involving the repetition of information.

Short-term Memory

Is a cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Verbal

Pertaining to words and language, both spoken and written.

Retained Indefinitely

Refers to the process of keeping information, memories, or materials for an unlimited period without forgetting or disposal.