EXERCISES+FOR+FINAL+REVIEW

EXERCISES+FOR+FINAL+REVIEW - EXERCISE68A

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EXERCISE 6-8A Beginning invty of product was 70 units @ $26 each. Purchases were:  280 @ $30                                  Sold 320 units at $40 each Ending inventory = 30 units What  is  gross margin  under  FIFO,   LIFO,  Weighted  Avg. a. (1)  Boone Company FIFO Sales (320 @ $40) $12,800 Cost of Goods Sold: From Beginning Inv.   70 units @ $26 = $ 1,820 From Purchases 250 units @ $30 = 7,500 (9,320) Gross Margin $3,480 a. (2) LIFO Sales (320 @ $40) $12,800
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Cost of Goods Sold: From Purchases 280 units @ $30 = $8,400     From Beg. Inv.   40 units @ $26 = 1,040 (9,440) Gross Margin $3,360 a. (3) Weighted Average Sales (320 @ $40) $12,800 Cost of Goods Sold: Average Cost per Unit 320 @ $29.20* = $9,344 (9,344) Gross Margin $3,456 *Total cost $10,220  ÷  Total units 350 = $29.20 Cost per unit EXERCISE 9-9A a.Purchased a new drill press for $65,000 Life is 5 yrs and salvage is $5,000
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This note was uploaded on 11/08/2009 for the course -01 80445 taught by Professor Allsup during the Spring '08 term at Kennesaw.

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EXERCISES+FOR+FINAL+REVIEW - EXERCISE68A

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