The Beginning Inventory and Purchases of an Item for the Period

question 156

Essay

The beginning inventory and purchases of an item for the period were as follows:
The company uses the periodic system, and there were 15 units in the inventory at the end of the period. Determine the cost of the 15 units in the inventory by each of the following methods, presenting details of your computations: (a) first-in, first-out; (b) last-in, first-out; (c) average cost. Do not round your intermediate calculations. Round your final answer to two decimal places.

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Definitions:

Trade Discount

A reduction from the list or retail price of a product, given by sellers to buyers in the business-to-business market.

Jeweller

A specialized professional or establishment in the business of selling, crafting, and repairing jewelry.

Canadian Polar Bear Diamonds

High-quality diamonds sourced from specific mines in Canada, known for their ethical sourcing and purity.

Trade Discount

A reduction from the listed price of goods or services offered to buyers in the business-to-business market to encourage purchase in larger quantities.