When inventory is purchased it, is recorded as a (n) and when sold it becomes a(n)

When inventory is purchased it, is recorded as a (n) and when sold it becomes a(n)

a. liability, withdrawal

b. assets expense

c. liability, asset

d. assets contra-asset

Use the following information to answer the questions 2 through 5.

Inventory data for Newman & Frith Merchandisers Inc. is provided here. Sales for the period were 2,800 units. Each sold for $8. The company maintains a periodic inventory system.

Date

Beginning inventory

Number of Units

Cost of Units

Total Cost

January

Purchase

1,000

$3.00

$ 3,000

February

Purchase

600

$3.50

$ 2,100

March

Purchase

800

$4.00

$ 3,200

April

Purchase

1200

$4.25

$5,100

Totals

Purchase

3600

$13,400

"Is this question part of your assignment? We can help"

ORDER NOW

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *