{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

problem set #4 - COGS(AV = 13.92(1800 2800 = $64,024.5 D...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Xiangying Wu Problem Set #4 for Intro to Financial Accounting Due march 30(Tuesday) Problem 1: A. Understate B. Overstate C. Understate Problem 2: A. COGS(FIFO)= 1200*10+600*12+100*12+400*13+600*15+1200*16+500*18=$62,800 B. COGS(LIFO)= 800*18+1000*16+200*16+600*15+400*13+700*12+900*10=$65,200 C. COGS(AV.) AV. Cost=(1200*10+700*12+400*13+600*15+1200*16+800*18)/ (1200+700+400+600+1200+800)= 68200/4900=$13.92
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: COGS (AV.) = 13.92*(1800+2800) = $64,024.5 D. Net Income=Sale – COGS Since the sale is the same, FIFO has smaller COGS than LIFO does. In this way, FIFO has a larger net income than LIFO does by $2,400(= 65,200- 62,800) E. Hartison Corporation prefers FIFO for financial reporting purpose because it will attract more inventors and customers to its company....
View Full Document

{[ snackBarMessage ]}