Chapter 6 week 3 E6-20

Chapter 6 week 3 E6-20 - Accounts Receivable = $1650 Gross...

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  E6-20   Beginning inventory   20 tires @ $60 Purchase                   8 tires @ $75 Sale                         15 tires @ $110   FIFO   Cost of Goods Sold = 15 tires x $60                = $900 Accounts Receivable = 15 tires x $110           = $1650 Gross Profit                                                   = $750   LIFO   Cost of Goods Sold = 8 tires x $75                  = $600                                   7 tires x $60                                     = $420     Cost of Goods                                               = $1020
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Unformatted text preview: Accounts Receivable = $1650 Gross Profit = $630 Average Cost 20 tires x $60 = $1200 8 tires x $75 = $ 600 Total = $1800/28 = $64.29 Cost of Goods Sold 15 tires x $64.29 = $964 Accounts Receivable = $1650 Gross Profit = $686...
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