Ace Systems, Inc On 28 January, Ace Systems Sells 18 Units (10 Units

question 64

Multiple Choice

Ace Systems, Inc. uses a perpetual inventory system. The company’s beginning inventory of a particular product and its purchases during the month of January were as follows:
$\begin{array}{lcccc} & \text { Quantity } &\text { Unit Cost } & \text { Total Cost } \\\text { Beginning inventory (1 Jan.) } & 10&\$ 27.50 & \$ 275 \\\text { Purchase (15 Jan.) } & 15 & \$ 28.00 & \$ 420 \\\text { Purchase (23 Jan.) } & \underline{5} & \$ 29.00 & \$ 145 \\\quad \text { Total } & \underline{30}&& \underline{\$ 840}\end{array}$
On 28 January, Ace Systems sells 18 units (10 units from beginning inventory, 4 units from 15 Jan purchase, and 4 units from 23 Jan purchase) of this product. The other 12 units remain in inventory at 31 January.


-Assuming that Ace Systems uses the FIFO flow assumption, the 12 units of this product in inventory at 31 January have a total cost of:

• A) $341
• B) $509.
• C) $499.
• D) Some other amount.

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Definitions:

Food and Supplies

Items necessary for the operation of a business, especially in the hospitality and retail sectors, including consumable items and essential supplies.

Tenant-Days

Tenant-days represent a metric used in real estate management to calculate the total number of days a property is occupied by tenants over a specific period.

Food and Supplies

Items that are consumed or used in the process of feeding individuals and supporting operations, often accounted for in budgeting for institutions like schools and hospitals.

Flexible Budget

A budget that adjusts or changes according to the volume of output or the level of activity achieved.