Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. thanks! whitby inc. is a wholesaler that uses a p

Thanks! Whitby Inc. is a wholesaler that uses a perpetual inventory system. The company's...

50.1K

Verified Solution

Question

Accounting

imageimage

Thanks!

Whitby Inc. is a wholesaler that uses a perpetual inventory system. The company's accounting records provided the following transactions for Product B during the fiscal year ended on December 31, 2020. Sale Price Unit Cost $9 Date March 5 June 15 September 19 November 20 Transactions Purchase Sale Purchase Sale Units 19,000 10,000 8,000 16,000 $27 11 30 Additional information: The beginning inventory consisted of 7,000 units at a total cost of $56,000. All sales are made on account with credit terms, 2/10, n/30. Customers who purchased 10,000 units on November 20 paid the amount due within the discount period. All other customers paid their accounts receivable after the discount period. At the start of each question below, we indicate whether the First-in, First-out (FIFO) method or the Weighted Average Cost (WAC) method is used. (FIFO) Assume for this question only that the cost of sales is $240,000. In that case, the inventory turnover ratio for 2020 would equal: OA 3.33 OB. 2.45 O C. 3.53 OD. 43.63 O E. None of the other ratios. (WAC) The average cost per unit of the 10,000 units sold on June 15 is: O A $10 OB. $9.33 OC. $8.50 OD. $8.73

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students