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American Depress Limited made the following purchases and sales of Products A, B and C during the year ended December 31, 2016:
Opening inventory at January 1 amounted to 4,000 units at $11.90 per unit for Product A, 5,000 units at $9.54 per unit for Product B, and 6,000 units at $14.71 per unit for Product C.
Required:
- Prepare inventory record cards for Products A, B, and C for the year using the FIFO inventory cost flow assumption.
- Calculate total cost of ending inventory at December 31, 2016.
- Assume now that American Depress keeps over 1,000 types of inventory on hand. Why might staff prefer to use computerized accounting software if a perpetual inventory system is used?
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