Chapter 8 Homework - Chapter 8 Valuation of Inventories A Cost-Basis Approach Tiffany Watt Homework AC 301 – 01 Exercises E8-12 Incorrect

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Chapter 8: Valuation of Inventories: A Cost-Basis Approach Tiffany Watt Homework October 27, 2010 AC 301 – 01   Brief Exercises BE8-5 Date of Invoice No. Units Unit Cost Total Cost April 1 250 $10.00 $2,500 April 15 400 12.00 4,800 April 23 350 13.00 4,550 Total goods available 1,000 $11,850 Weighted-average cost per unit $11,8 50 = $11.8 5 1,000 Inventory in units 300 units Ending inventory 30 0 × $11. 85 = $3,55 5 Cost of goods available for sale $11,8 50 Deduct: Ending inventory 3,555 Cost of goods sold $8,29 5 BE8-6 Date No. Units Unit Cost Total Cost April 23 300 $13.0 0 $3,900 Ending inventory 300 $3,900 Cost of goods available for sale $11,8 50 Deduct: Ending inventory 3,900 Cost of goods sold $7,95 0 BE8-7
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Chapter 8: Valuation of Inventories: A Cost-Basis Approach Tiffany Watt Homework October 27, 2010 AC 301 – 01   Date No. Units Unit Cost Total Cost April 1 250 $10.0 0 $2,500 April 15 50 12.00 600 Ending inventory 300 $3,100 Cost of goods available for sale $11,8 50 Deduct: Ending inventory 3,100 Cost of goods sold $8,75
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Unformatted text preview: Chapter 8: Valuation of Inventories: A Cost-Basis Approach Tiffany Watt Homework October 27, 2010 AC 301 – 01 Exercises E8-12 Incorrect Recording Correct Recording Net Income Net Income Year per Books Year per Books 200 2 $50,000 200 2 $47,000 ($50,000 - $3,000) 200 3 52,000 200 3 43,000 ($52,000 - $9,000) 200 4 54,000 200 4 65,000 ($54,000 + $11,000) 200 5 56,000 200 5 56,000 (No Change) 200 6 58,000 200 6 60,000 ($58,000 + $2,000) 200 7 60,000 200 7 52,000 ($60,000 - $8,000) E8-23 Ending Inventory Layers Price Index Ending Inventory Date at Base Prices at Base Prices (Percenta ge) at Dollar-Value LIFO December 31, 2005 $92,000 – 105 $92,600 December 31, 2006 97,000 $5,000 115 5,750 $98,350 Step 1. $98,3 50 Step 2. $97,0 00 Step 3. $5,75-92,60-92,00 ÷ 5,00 $5,75 $5,00 1.15...
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Chapter 8 Homework - Chapter 8 Valuation of Inventories A Cost-Basis Approach Tiffany Watt Homework AC 301 – 01 Exercises E8-12 Incorrect

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