Question No1:
The following information was available from the inventory records of Rich Company for January:
Units Unit CostTotal Cost
Balance at January 13,0009.7729,310
Purchases:
January 62,00010.3020,600
January 262,70010.7128,917
Sales:
January 7(2,500)
January 31(4,000)
Balance at January 31 1,200
a) Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
a.12,606.
b.12,284.
c.12,312.
d.12,432.
b) Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the LIFO inventory method, rounded to the nearest dollar?
a.12,606.
b.12,284.
c.12,312.
d.12,432.
c) Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the FIFO inventory method, rounded to the nearest dollar?
d) Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the Weighted Average Inventory method, rounded to the nearest dollar?
