E6-7 - E6-7 Jones Company had 100 units in beginning...

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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. FIFO LIFO Average-Cost Ending Inventory $ 10400 $ 8000 $ 9600 Cost of goods sold $ 25600 $ 28000 $ 26400 Correct. Which cost flow method would result in the highest net income? FIFO Correct. Which cost flow method would result in inventories approximating current cost in the balance sheet? FIFO Correct. Which cost flow method would result in Jones paying the least taxes in the first year? LIFO ...
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This note was uploaded on 07/31/2011 for the course ACCT 557 taught by Professor Kahn during the Spring '10 term at Strayer.

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E6-7 - E6-7 Jones Company had 100 units in beginning...

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