Chapter 8 Homework

# 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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## This note was uploaded on 09/01/2011 for the course BUSINESS 101 taught by Professor - during the Spring '11 term at Mississippi Valley State University.

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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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