ACC 201 -- Week2 Assignment2

ACC 201 -- Week2 Assignment2 - WK2 Assignment Two 1 Week 2...

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WK2 Assignment Two 1 Week 2 Assignment 2 Ashley Dyal ACC 201 Ms. Rayford February 15, 2011
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WK2 Assignment Two 2 Problem 4-20 Clear Photography Inc. Cash $18000 Beginning Inv $13500 (150 units @$90) Common Stock $15000 Ret. Earning $16500 Beginning Inventory 150 units @ $90 $13,500 1 st purchase of 2007 120 units @ $92 $11,040 2 nd purchase of 2007 200 units @ $100 $20,000 Total units for sale 470 total units $44,540 FIFO Cost Flow Beginning Inv 150 @ $90 $13,500 1 st purchase 120 @ $92 $11,040 2 nd purchase 30 @ $100 $3,000 Units sold 300 $27,540 Ending Inventory $ 44,540 - $27,540 = $17,000 Taxes paid on this income: $6,800 LIFO Cost Flow 2 nd purchase 200 @ $100 $20,000 1 st purchase 100 @ $92 $9,200 Units sold 300 $29,200 Ending Inventory $44,540 -$29,200 = $15,340
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WK2 Assignment Two 3 Taxes paid on this income: $11,680 Weighted Cost Flow $44,540/470 = $95 300 * $95 = $28,500 Ending Inventory $44,540 - $28,500 = $16,040 Taxes paid : $28,500*.40 = $11,400 Clear Photography Inc Partial
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ACC 201 -- Week2 Assignment2 - WK2 Assignment Two 1 Week 2...

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