Respuesta :
Answer:
$394, 080
Explanation:
To calculate the ending inventory of RF Company, we have to first calculate the inventory at year-end (December 31st) divided by the price index.
[tex]= \frac{430080}{1.12} = 384000[/tex]
Second, we subtract the sales of the year from the inventory at year-end.
[tex]= 384000 - 300000 = 84000[/tex]
To calculate RF Company's ending inventory, we have;
[tex]300000 + 84000 * 1.12 = 394080[/tex]
Therefore, RF Company's ending inventory is $394,080
Answer:
$394,080
Explanation:
Given
January inventory =
$300,000
December inventory = $ 430,080
Price index = 1.12
We use the following method to obtain the RF company's unending inventory
December 31st divided by the price index.
= $430,080÷1.12
= $384,000
we now minus the sales of the whole year from the inventory.
= $384,000 - $300,000
=$84,000
The RF Company's ending inventory is
= $300,000+$84,000×1.12
= $300,000+$94,080
=$394,080
$394,080 as RF Company's ending inventory
