ACC 205 Week 3 Assignment and Quiz - ACC 205 Week 3...

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ACC 205 Week 3 Assignment and Quiz ACC 205 - Principles of Accounting I Ashford Course Guide ACC 205 Week 3 Assignment; E5-16, E 6-23, E6-28, 5-29A ACC 205 Week 3 Quiz (10 Multiple Choice)
ACC 205 Week 3 Assignment; E5-16, E 6-23, E6-28, 5-29A E5-16 Sales Sale discounts Net sales Cost of goods sold Gross profit 89,500 1,560 87,940 60,200 (a) 103,600 (b) 99,220 ( c ) 34,020 66,200 2,000 (d) 40,500 ( e) (f) 2,980 (g) 75,800 36,720 A. 87,940 - 60,200 = 27,740 B. 103,600 - 99,220 = 4,380 C. 99,220 - 34,020 = 65,200 D. 66,200 - 40,500 = 64,200 E. 64200 - 40,500 = 23,700 F. Must solve (g) first, then (f) 2,980 +112,520 = 115,500
G 75,800 + 36,720 = 112,520 E 6-23 FIFO LIFO Average Sales revenue (12 * 90)……. 1,080 1,080 1,080 Cost of goods sold: FIFO (12 * 65)…………. 780 Lifo (10*78+2*65)… 910 Average (12*70)………….. 840 Gross profit……………… 300 170 240 Total cost / total units = Average cost per unit [email protected] 65 = 1,040 16 10 @ 78 = 780 10 1,820 / 26 = 70
The FIFO method results in the largest gross profit during times of increasing inventory prices. This method will produce the lowest cost of goods sold. E6-28 Beginning inventory………… 220,000 Net purchases………. 800,000 Cost of goods available……….. 1,020,000 Estimated cost of goods sold : Net sales revenue………. 1,100,000 Less: Estimated gross profit of 45%…. 495,000

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