Chapter 8 HW - Student Name: Ankita Shah Class: Financial...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Student Name: Ankita Shah Class: Financial Accounting Problem 08-01 HUDSON COMPUTING General Journal Account Titles Debit Credit (1) Specific identification method: a. May. 10 Cost of Goods Sold 137,800 Inventory 137,800 (2) Average-cost method: b. May. 10 Cost of Goods Sold 137,700 Inventory 137,700 (3) First-in, first-out (FIFO) method: c. May. 10 Cost of Goods Sold 137,000 Inventory 137,000 (4) Last-in, first-out (LIFO) method: d. May. 10 Cost of Goods Sold 138,000 Inventory 138,000 e. The major difference in the financial reporting by choosing the FIFO method over the LIFO method would be the following: used, where as in LIFO method they are shown at most recent prices. 2. The other significant difference is the valuation of the asset (inventory) is at most recent costs for the FIFO method, versus it is at old (more ou dated) costs with the LIFO method. 3. Last but not the least, the major reason the management may choose the FIFO method over the LIFO methos is to show higher profitability of the business for the investors and the creditors.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
Student Name: Ankita Shah Class: Financial Accounting Problem 08-01 BASSTRACK General Journal 2007 Account Titles Debit Credit (1) Specific identification method: Jan. 15 Cost of Goods Sold 30,500 Inventory 30,500 «- Correct! (2) Average-cost method: Jan. 15 Cost of Goods Sold 30,800 Inventory 30,800 «- Correct! (3) First-in, first-out (FIFO) method:
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/13/2009 for the course ACCOUNTING ACCTG 50 taught by Professor B during the Fall '09 term at University of Phoenix.

Page1 / 13

Chapter 8 HW - Student Name: Ankita Shah Class: Financial...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online