Beginning Inventory, Purchases, and Sales for Product XCX Are as Follows

question 77

Essay

Beginning inventory, purchases, and sales for Product XCX are as follows: $\begin{array}{lllll}\text { Oct. } 1 & \text { B eginning Inventory } & 24 \text { units } & \text { at } & \$ 12 \text { each } \\\text { Oct. } 17 & \text { Purchase } & 10 \text { units } & \text { at } & \$ 14 \text { each } \\\text { Oct. } 30 & \text { Sale } & 52 \text { units } & &\end{array}$ ?
Assuming a periodic inventory system and the last-in, first-out method, determine (a) the cost of the merchandise sold for the October 30 sale and (b) the inventory on October 31.

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Demand

Demand refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Price Decrease

A reduction in the cost that buyers must pay for a good or service.

Normal Good

A type of good for which demand increases when income increases, and falls when income decreases.