Question

to completa Better Boy, Inc. has 7 uns in story on December 11 Theuns were purchased in beror 360 sach The price from the suppliers indicate that the same tems would now cost the company at 31,156 What be the partida deg Merchandise Inventory on the balance sheet? 12. $1,120 5305 $1.156 QUESTION 15 A company purchased on 20 each onwy 31 It purchased out to Geach on February 28580 un beach hon Much through Doctor What is the amount of way beceber 31. the campanyes the best-o FIFO entory costing method in that the cases perpety system 52.240 OS 9. ST100 2 QUESTION 16 Acompany purchased 100 lachy 31 purchases or cowy od 555 from Mych 1 December 31. the picture Contoo Sold on the they were correspo System) D600 1 DE Click to San th 5 O E R Т. Y

Answer 1

Answer to Question 1:Correct answer is Option 2: $ 1120

Reason:

Inventory is valued at lower of cost i.e 7 units X $160= $1120 or Net Realisable value $1156

Lower is Cost=7 units X $160= $1120

Answer to Question 2: Correct answer is Option 3=$9,360

Reason:

Valuation of Ending inventory as per FIFO method

Date	Opening balance	Purchases	Sold	Closing balance
31-Jan	Nil	400 unis X $20 =8,000	Nil	400 unis X $20 =$8,000
28-Feb	400 unis X $20 =$8,000	520 units X $ 26=$13,520		400 unis X $20 =$8,000 520 units X $ 26= $13,520
01-Mar	400 unis X $20 =$8,000 520 units X $ 26= $13,520	Nil	400 units X $20=$8000 &160unitsX$26=$4160	360 units X $ 26=$9360

Answer to Question 3: Ending part of Image is not clear to see the question.Hence Question 3 could not be solved.Please repost Question 3.

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