Accounting E6-7, P6-3A (2) - E6-7...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

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

Unformatted text preview: E6-7 (a)DateExplanationUnitsUnit CostTotal CostBeginning Inventory10010010,000Purchases20013026,000Total30036,000FIFO METHODDateExplanationUnitsUnit CostTotal CostBeginning Inventory10010010,000Purchases20013026,000Total30036,000Dec. 31Less: Ending inventory8013010,40036,000-10,400Cost of goods sold25,600LIFO METHODDateExplanationUnitsUnit CostTotal CostBeginning Inventory10010010,000Purchases20013026,000Total30036,000Dec. 31Ending inventory801008,00036,000-8,000Cost of goods sold28,000Average-Cost MethodDateExplanationUnitsUnit CostTotal CostBeginning Inventory10010010,000Purchases20013026,000Total30036,000Average unit cost30012036,000Dec. 31Ending inventory801209,60036,000-9,600Cost of goods sold26,400E6-7 (b),(c),(d)(b) which would result in the highest net income?FIFO method(c) Which results in inventories approximating current cost in the balance sheet?...
View Full Document

This note was uploaded on 03/28/2011 for the course ACCOUNTING 101 taught by Professor Bob during the Spring '10 term at Rowan-Cabarrus Community College.

Page1 / 5

Accounting E6-7, P6-3A (2) - E6-7...

This preview shows document pages 1 - 4. Sign up to view the full document.

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