A Cost basis approach. 1)Office Supplies Inc. had 200 calculators on hand on January 1,...
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Accounting
A Cost basis approach.
1)Office Supplies Inc. had 200 calculators on hand on January 1, 2017, costing $18 each. On Jan 8th, Office supplies Inc. bought 75 calculators at $19 each. On Jan 12th, office supplies Inc. sold 150 calculators for $28 each. On January 15th, office supplies Inc. bought 100 calculators for $20 each. On January 27, office supplies Inc. bought another 100 calculators at $22 each. Lastly, on January 30th, office supplies Inc. sold 210 calculators at $47.50. Office supplies Inc. uses the LIFO method and the periodic inventory system.
Requirement: Compute the gross profit for the month of January for office supplies Inc.
What is the cost of inventory on hand on January 31, assuming the periodic inventory system using the average cost method?
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