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Question 4.8: Kahn Distribution Limited (KDL) purchases inventory items fo...

Kahn Distribution Limited (KDL) purchases inventory items for resale. During 2006, Kahn had the following transactions:

Inventory sales during the year were 5,600 units at $50 per unit. KDL determines that there were 2,000 remaining units of inventory and specifically identifies that 1,900 were those purchased in the fourth quarter and 100 were purchased in the third quarter. What are the revenue and expense associated with these transactions during 2006?

Inventory Purchases
First quarter 2,000 units at $40 per unit
Second quarter 1,500 units at $41 per unit
Third quarter 2,200 units at $43 per unit
Fourth quarter \underline{1,900} units at $45 per unit
Total 7,600 units at a total cost of $321,600
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