Mgmt_200_Spring_2008_solutions_2-25-08(2,28)

Mgmt_200_Spring_2008_solutions_2-25-08(2,28) -...

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Management 200 – Introductory Financial Accounting– Spring 2008 Krannert School of Management - Purdue University Solutions to class assignment for February 25, 2008 E7-5 Weighted Units FIFO LIFO Average Cost of goods sold: Beginning inventory (\$6). ................ 2,000 12,000 12,000 12,000 Purchases (March 21) (\$9). .............. 5,000 45,000 45,000 45,000 (August 1) (\$10). ........... 3,000 30,000 30,000 30,000 Goods available for sale. ...... 10,000 87,000 87,000 87,000 Ending inventory*.
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Unformatted text preview: ........................... 4,000 39,000 30,000 34,800 Cost of goods sold. ............... 6,000 48,000 57,000 52,200 *Ending inventory computations: FIFO: (3,000 units @ \$10) + (1,000 units @ \$9) = \$39,000. LIFO: (2,000 units @ \$6) + (2,000 units @ \$9) = \$30,000. Average: [(2,000 units @ \$6) + (5,000 units @ \$9) + (3,000 units @ \$10)] = \$87,000 10,000 units = \$8.70 per unit. 4,000 units @ \$8.70 = \$34,800....
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