Widgets Inc.,a company that sells only one type of widget,had a beginning inventory in September of 11 units,at $200/unit.Throughout the first two weeks,they purchased additional inventory in the amount of 5 widgets at $209/widget and 9 widgets at $220 a piece.During the third week,they sold 12 widgets at $420/each.If replacement cost fell to $205 in October,and the company is using FIFO,what is the adjustment that would be made to the Inventory account?

Question

Quizplus · Accepted Answer

The Answer of Widgets Inc.,a company that sells only one type of widget,had a beginning inventory in September of 11 units,at $200/unit.Throughout the first two weeks,they purchased additional inventory in the amount of 5 widgets at $209/widget and 9 widgets at $220 a piece.During the third week,they sold 12 widgets at $420/each.If replacement cost fell to $205 in October,and the company is using FIFO,what is the adjustment that would be made to the Inventory account?