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Unformatted text preview: (revenue) Compute the following amounts: Inventory Costing Method Revenue Cost of Goods Sold Gross Margin Balance Sheet Inventory FIFO $14,000 $6,700 $7,300 $3,400 LIFO $14,000 $7,400 $6,600 $2,700 GB 201 Fall 2006 Class Notes for Day # 25 Page 2 III. Given a particular set of facts and assumptions, the following pairs of amounts were computed using FIFO and LIFO. For each pair of amounts, indicate which amount resulted from applying FIFO, and which amount resulted from applying LIFO. Enter either FIFO or LIFO in each blank. A. Prices are rising, ending inventory is: 1. $14,500 ____________FIFO 2. $14,000 ____________LIFO B. Prices are rising, cost of goods sold is: 1. $6,500 _____________LIFO 2. $5,000 _____________FIFO C. Prices are falling, ending inventory is: 1. $6,500 _____________LIFO 2. $5,000 _____________FIFO D. Prices are falling, cost of goods sold is: 1. $8,700 _____________LIFO 2. $9,000 _____________ FIFO...
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- Spring '10
- gross margin, FIFO and LIFO accounting, Method FIFO LIFO