The Following Data Are Available for One of the Products

question 165

Essay

The following data are available for one of the products sold by Robey Company, which uses a perpetual inventory system. $\begin{array}{rrl}\text { February } & 1 & \text { On hand, } 10 \text { units at } \$ 2 \text { each } \\&8 & \text { Sold, } 6 \text { units for } \$ 10 \text { each } \\& 14 & \text { Purchased, } 30 \text { units at } \$ 3 \text { each } \\&25 & \text { Sold, } 24 \text { units for } \$ 10 \text { each }\end{array}$

-Refer to the information provided for Robey Company.If the company uses the FIFO method,determine the following amounts:
A)ending inventory on February 28th
B)cost of goods sold for the month of February

• A)ending inventory on February 28th
• B)cost of goods sold for the month of February

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Definitions:

Current prices

Prices at which goods and services are being sold in the present market, reflecting the current economic conditions.

LIFO

The "last in, first out" method of inventory valuation, where the most recently acquired items are considered sold first, used in periods of inflation to increase cost of goods sold and reduce taxes.

Periodic inventory system

An inventory accounting system where updates to inventory accounts are made periodically, typically at the end of a financial period, rather than after each transaction.

Ending inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold.