Elly Company uses a periodic inventory system. Details for the inventory account for the month of January 2016 are as follows: $$\begin{array} { l c c r }
& \text { Units } & \text { Per unit price } & \text { Total } \
\hline\text { Balance, } 1 / 1 / 16 & 200 & \$ 5.00 & \$ 1,000 \
\text { Purchase, } 1 / 15 / 16 & 100 & 5.30 & 530 \
\text { Purchase, } 1 / 28 / 16 & 100 & 5.50 & 550
\end{array}$$ An end of the month (1/31/16) inventory showed that 150 units were on hand. How many units did the company sell during January 2016?
A) 50
B) 150
C) 200
D) 250

Question

Elly Company uses a periodic inventory system. Details for the inventory account for the month of January 2016 are as follows: $$\begin{array} { l c c r } 
& \text { Units } & \text { Per unit price } & \text { Total } \
\hline\text { Balance, } 1 / 1 / 16 & 200 & \$ 5.00 & \$ 1,000 \
\text { Purchase, } 1 / 15 / 16 & 100 & 5.30 & 530 \
\text { Purchase, } 1 / 28 / 16 & 100 & 5.50 & 550
\end{array}$$ An end of the month (1/31/16) inventory showed that 150 units were on hand. How many units did the company sell during January 2016?
A) 50
B) 150
C) 200
D) 250

Quizplus · Accepted Answer

The company started with 200 units, purchased 100 units twice, totaling 400 units. With 150 units left at the end of the month, they sold 250 units (400 units available - 150 units ending inventory = 250 units sold).

Elly Company Uses a Periodic Inventory System An End of the Month (1/31/16) Inventory Showed That 150