Ch6 - 6-14 1 Inventory…… 2770 A/P…… 2770 2 A/R(13...

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Unformatted text preview: 6-14 1. Inventory…… 2770 A/P…… 2770 2. A/R (13 * 500)…… 6500 Sales Revenue …… 6500 Costs of goods sold (5 * 160) + (8 *170)…. 2160 Inventory…… 2160 3. Sales Revenue…… 6500 Cost of goods sold…… (2160) Gross Profit…… 4340 Ending Inventory = (800+ 1870 + 900 – 2160) = 1410 6-15 1a. SPECIFIC UNIT COST Costs of goods sold: (2 * 160) + (11 * 170) = 2190 Ending Inventory: (3570 – 2190) = 1380 b. AVERAGE COST Costs of goods sold: (13 * [3570/21] or 170) = 2210 Ending Inventory: (8 * 170) = 1360 c. FIFO Costs of goods sold: (5 * 160) + (8 * 170) = 2160 Ending Inventory: (5 * 180) + (3 * 170) = 1410 d. LIFO Costs of goods sold: (5 * 180) + (8 * 170) = 2260 Ending Inventory: (5 * 160) + (3 * 170) = 1310 2. Highest costs of good sold = LIFO Lowest costs of good sold = FIFO The cause is increase in inventory 6-17 1a. FIFO Costs of Good Sold: (5 * 90) + (6 * 95) = 1020 Ending Inventory: (6 * 95) = 570 b. LIFO Costs of Good Sold: (11 * 95) = 1045 Ending Inventory: (5 * 90) + 95 = 545 2. Income Statement Sales Revenue (3 * 150) + (8 * 155): 1690 Costs of Goods Sold: 1020 Gross Profit: 670 Operating Expenses: 320 Income before tax: 350 Income after tax: 140 Net Income: 210 6-20 1. LIFO 2. FIFO 3. Specific Unit Cost 4. Average Cost 5. FIFO 6. LIFO 7. LIFO 8. LCM 9. LIFO 10. LIFO ...
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Ch6 - 6-14 1 Inventory…… 2770 A/P…… 2770 2 A/R(13...

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