Solution_to_Unit_8_Textbook_Exercises

Solution_to_Unit_8_Textbook_Exercises - ...............

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PE 7–3A a. Cost of merchandise sold (August 30): $760 = (20 units × $38) b. Inventory, August 31: 13 units @ $34 $442 2 units @ $38 76 15 $518 PE 7–4A a. First-in, first-out (FIFO) method: $720 = (20 units × $36) b. Last-in, first-out (LIFO) method: $540 = (12 units × $25) + (8 units × $30) c. Average cost method: $645 (20 units × $32.25), where average cost = $32.25 = $2,580/80 units PE 7–6A Amount of Misstatement Overstatement (Understatement) Balance Sheet: Merchandise inventory understated.
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Unformatted text preview: ............ $(9,000) Current assets understated. .......................... (9,000) Total assets understated. ............................... (9,000) Owners equity understated. .......................... (9,000) Income Statement: Cost of merchandise sold overstated. .......... $ 9,000 Gross profit understated. ............................... (9,000) Net income understated. ................................ (9,000)...
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This note was uploaded on 04/22/2009 for the course BUS 181 taught by Professor Ms. smith during the Spring '09 term at Harold Washington College - CCC.

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