Exam3 - Study Guide - Cost of Goods Sold (COGS) FIF O LIF O...

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Cost of Goods Sold (COGS) Ending Inventory (EI) FIF O FIFO COGS is lowest because it’s based on the older costs, which are low. Gross profit is, therefore, the highest. FIFO EI is highest because it’s based on the most recent costs, which are high LIF O LIFO COGS is highest because it’s based on the most recent costs, which are high. Gross profit is, therefore, the lowest. LIFO EI is lowest because it’s based on the oldest costs, which are low.
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Selling a Plant Asset ntangible Assets: Patents Straight-Line Units-of-Production ble Declining Balance Journal Entries: Purchase Inventory: Inventory (Asset) [D] ; Cash or A/P [C] Record Sales Expense: COGS (Expense) [D] ; Inventory (Asset) [C] Record Sales Revenue: Cash or A/R (Asset) [D] ; Sales Revenue [C] Gross Profit (Gross Margin): (Net) Sales Revenue - Cost of Goods Sold (COGS) Gross Profit - Operating expenses = Net Income Gross Profit Method (Estimating [Ending] Inventory): Beginning Inventory + Purchases = Cost of Goods Available for Sale (COGAS)
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Exam3 - Study Guide - Cost of Goods Sold (COGS) FIF O LIF O...

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