The following data were taken from the accounting records of Wrecking Balls, Inc Balance at January 1, 2022; 5,000 balls @ P20 Purchases: January 10, 2022; 3,200 balls @ P25 January 15, 2022; 5,000 balls @ P28 Sales: January 5, 2022; 4,500 balls January 20, 2022; 5,200 balls If Wrecking Ball uses a periodic inventory system, the cost of the inventory using first-in, first-out cost flow assumption at January 31, 2022 is?

The following data were taken from the accounting records of Wrecking Balls, Inc Balance at January 1, 2022; 5,000 balls @ P20 Purchases: January 10, 2022; 3,200 balls @ P25 January 15, 2022; 5,000 balls @ P28 Sales: January 5, 2022; 4,500 balls January 20, 2022; 5,200 balls If Wrecking Ball uses a periodic inventory system, the cost of the inventory using first-in, first-out cost flow assumption at January 31, 2022 is?

Name: The following data were taken from the accounting records of Wrecking
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Description: The following data were taken from the accounting records of Wrecking Balls, IncBalance at January 1, 2022; 5,000 balls @ P20Purchases:January 10, 2022; 3,200 balls @ P25January 15, 2022; 5,000 balls @ P28Sales:January 5, 2022; 4,500 ballsJanuary 20,

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 10EA: Calculate the cost of goods sold dollar value for A67 Company for the month, considering the...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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The following data were taken from the accounting records of Wrecking Balls, Inc

Balance at January 1, 2022; 5,000 balls @ P20

Purchases:

January 10, 2022; 3,200 balls @ P25

January 15, 2022; 5,000 balls @ P28

Sales:

January 5, 2022; 4,500 balls

January 20, 2022; 5,200 balls

If Wrecking Ball uses a periodic inventory system, the cost of the inventory using first-in, first-out cost flow assumption at January 31, 2022 is?

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Follow-up Question

If Wrecking Ball uses a periodic inventory system, the cost of the inventory using the periodic average cost flow assumption at January 31, 2022 is?

a. P78,960

b. P98,000

c. P84,840

d. P98,240

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