2.15 Accounting 211

# 2.15 Accounting 211 - 18 To estimate sales internally when...

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Accounting 211 Monday, February 15th, 1999 Announcements: none Lecture notes: Chapter 9 Homework Questions: 1. Merchandise Inventory is all goods owned and held for sale. The primary objective of measuring it is to determine how much money was made. 2. Inventory for a manufacturing company consists of all the goods they need to make the products instead of only finished goods. 4. Invoice price, less discounts, + freight in, + taxes and tariffs 5. Yes, it is still inventory and has not yet been used. 7. No 9. If prices are rising, FIFO will show higher Net Income and LIFO will reduce taxes to be paid. 12. No, they must choose one and use it so they can't gain unfair advantage if prices rise or fall.

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Unformatted text preview: 18. To estimate sales internally when inventory can't be measured directly (theft, loss, fire). Short Exercises: 3. Ending Inventory 60 at \$11 = 660 50 at \$12 = 600 \$1,260 Cost of Goods Sold CGAS = 2,740- End Inv.- 1,260 COGS \$1,480 4. Average Cost = 2,740 / 250 = \$10.96 Ending Inventory = \$1,205.60 Cost of Goods Sold = \$1,534.40 5. Cost of Goods Sold 80 at \$10 = 800 60 at \$11 = 660 \$1,460 Ending Inventory = \$1,280 6. Cost of Goods Sold 70 at \$12 = 840 70 at \$11 = 770 \$1,610 Ending Inventory = \$1,130 11. TC MV LCM 6,720 5,600 5,600 5,320 5,510 5,320 2,720 2,800 2,720 14,760 13,910 13,640 Major Category Item-By-...
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2.15 Accounting 211 - 18 To estimate sales internally when...

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