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Question: Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System
Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January 31, 2009. The inventory's selling price is $9 per unit.
Transactions: Unit Cost Units Total cost
Inventory,Jan. 1 $2.50 250 $650
Sale, Jan. 10 (200)
Purchase Jan. 12 $3.00 300 900
Sale, Jan. 17 (150)
Purchase, Jan. 26 $4.00 80 320
Required:
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