This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: E6-7
Jones Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the
end of the year, Jones had 80 units in ending inventory. Correct.
Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost.
Cost of goods sold
$ 26400 Correct.
Which cost flow method would result in the highest net income?
Which cost flow method would result in inventories approximating current cost in the balance sheet?
Which cost flow method would result in Jones paying the least taxes in the first year?
View Full Document
This note was uploaded on 07/31/2011 for the course ACCT 557 taught by Professor Kahn during the Spring '10 term at Strayer.
- Spring '10
- Financial Accounting