2011 Financial 4 Update - 2011 Financial 4 Update Financial...

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2011 Financial 4 Update Financial 4 Update for the 2011 Edition Last Updated March 8, 2011 SECTION A: TEXT AND LECTURE ERRATA Item A.1 Pg. F4-28, Example - Moving Average Method There is a small error in this example (change highlighted). Facts and Requirement: Assume the same information for Helix Corporation as in the example for FIFO (above). What are the amounts of ending inventory and cost of goods sold under the moving average method? Solution Purchases/(Sales) Inventory Balances (rounded) Quantity Cost Total Quantity Avg. Cost Total 4,000 $4.25 $17,000 4,000 $4.25 $17,000 (3,000) $4.25 $(12,750) 1,000 $4.25 $4,250 2,000 $4.50 $9,000 3,000 $4.4167 1 $13,250 (1,000) $4.4167 $(4,417) 2,000 $4.4167 $8,833 ( 3,000) $4.75 $14,250 5,000 $4.6166 2 $23,083 1 - Weighted average cost per unit = ($4,250 + $9,000) / 3,000 = $4.4167 2 - Weighted average cost per unit = ($8,833 + $14,250) / 5,000 = $4.6166 Cost of goods sold is $17,167 ($12,750 + $4,417). Ending inventory is $23,083
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This note was uploaded on 09/25/2011 for the course ACCOUNTING AC591 taught by Professor W during the Spring '11 term at Keller Graduate School of Management.

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2011 Financial 4 Update - 2011 Financial 4 Update Financial...

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