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Unformatted text preview: B. Gross margin will be higher than under LIFO. C. Ending inventory will be lower than under LIFO. D. Cost of goods sold will be lower than under LIFO. E. Both B and D 4. TRUE OR FALSE An overstatement of 2011 ending inventory results in an understatement of 2011 net income. 5: Complete the 4 missing data points below: (2 points each) Net Sales Revenue Beginning Inventory Purchases Total Available Ending Invento ry Cost of Goods Sold Gross Profit Expenses Pretax Income or (Loss) $ 1,100 $200 $900 1,100 300 800 300 $150 $150 Bonus: (4 points only) TRUE OR FALSE : Under the perpetual inventory system ending inventory and cost of goods sold are determined at the end of the accounting period based on a physical count....
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This note was uploaded on 12/13/2011 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.
- Fall '08
- Financial Accounting