ACC 215 Ex 6-1 p247

ACC 215 Ex 6-1 p247 - December 21 15 * 14 = 210 390 LIFO...

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Tevin Trader starts a merchandising business on December 1 and enters into three inventory  purchases: December 7 10 units@ $6 cost December 14 20 units @ $12 cost December 21 15 Units @ $14 cost Trader sells 15 units for $23 each on December 15. Eight of the sold units are from December 7  purchase and seven are from December 14 purchase. Trader uses a perpetual inventory  system. Determine the costs assigned to the December 31 ending inventory when costs are  assigned based on (a)FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. Problem no. 1 No. of units sold: 15 units Date of units sold: December 15 Cost of ending inventory: FIFO method: December 14  15 * 12 = 180
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Unformatted text preview: December 21 15 * 14 = 210 390 LIFO method: December 7 10 * 6 = 60 December 14 5 * 12 = 60 December 21 15 * 14 = 210 330 Weighted average method: Issue price = 10 * 6 + 20 * 12 10 + 20 = 60 + 240 30 = 300/30 = 10 Ending inventory: 15 * 10 = 150 + 15 * 14 = 210 360 Specific identification method: December 7 2 * 6 = 12 December 14 13 * 12 = 156 December 21 15 * 14 = 210 378...
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ACC 215 Ex 6-1 p247 - December 21 15 * 14 = 210 390 LIFO...

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