ANSWERS TO QUESTIONS
Because inventories are assets owned at the specific point in time for which a statement of financial position is prepared, they must be included in order that the owners’ financial position will be presented fairly. ... Average cost Total cost = $33,655* = $6.35 average cost per unit Total units 5,300 700 @ $6.35 = $4,445 EXERCISE 8-14 ... ................
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