ABC company sells dog biscuits and the price of eggs (used to make the biscuits)...
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Accounting
ABC company sells dog biscuits and the price of eggs (used to make the biscuits) is increasing at a rapid rate. The inventory activity for boxes of the biscuits are as follows. Beginning inventory is 40 boxes at $10 per box. The first purchase during the period is 50 boxes at $20 per box and the second purchase is 10 boxes at $15 per box.
What is the value of the inventory prior to the sale of any biscuits?
If 50 boxes of the biscuits sold, what is the inventory account value after these goods are sold?
If instead ABC company only sold 10 boxes of biscuits and used LIFO inventory costing, what would the inventory account value be after the goods were sold?
What is the weighted average unit cost of the inventory regardless of units sold?
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