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assignment ch 7-9

# assignment ch 7-9 - LIFO FIFO Weighted Average Cost of...

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Syed Abdullah Mannan Introduction to Financial Accounting Date: 09-28-2011 Chapter 7 7-12 No. The weighted average must take into account the number of units purchased at each price. For the Gamma Company, the weighted average unit cost of inventory is {(2 X \$4.00) + (3 X \$5.00)} / 5 = \$4.60. 7-37 Cost of Goods Available= \$19,400 (6,000 + 4,200 + 4,400 + 2,300 + 2,500) LIFO Ending Inventory = (3,000 @ \$2.00) + (1,500 @ \$2.10) = \$9,150 FIFO Ending Inventory = 1,000 @ 2.50 = \$2,500 1,000 @ 2.30 = \$2,300 2,000 @ 2.20 = \$4,400 500 @ 2.10 = \$1,050 4,500 \$10,250 Weighted Average = 19,400/9000 = \$2.15 per unit Ending Inventory = 4,500 @ \$2.15 = \$9,675

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Unformatted text preview: LIFO FIFO Weighted Average Cost of Goods Available \$19,400 \$19,400 \$19,400 Less Ending Inventory 9,150 10,250 9,675 \$10,250 \$ 9,150 \$ 9,725 Chapter 8 8-10 No. Depreciation doesn’t generate cash. 8-35 D= C-R (\$80,000 - \$8,000) = \$.36 per mile N (200,000) Depreciation Expense: Year 1: \$.36 X 60,000 = \$21,600 Year 2: \$.36 X 90,000 = \$32,400 Net Book Value When Sold: \$80,000 - \$21,600 - \$32,400 = \$26,000 Gain on Sale: \$30,000 - \$26,000 = \$4,000 Chapter 9 9-33 The person received a check for a lump sum in which all of the state and federal taxes had been deducted from the check....
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