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EXERCISES+FOR+FINAL+REVIEW

EXERCISES+FOR+FINAL+REVIEW - EXERCISE68A @\$26each...

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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
Calculate straight line depreciation and double declining depreciation.

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EXERCISES+FOR+FINAL+REVIEW - EXERCISE68A @\$26each...

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