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(Solution) Assignment for Chapter 6

# (Solution) Assignment for Chapter 6 - Assignment for...

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Assignment for Chapter 6 Question 1 (a) COST OF GOODS AVAILABLE FOR SALE Date Explanation Units Unit Total Cost 1/1 Beginning Inventory 100 \$ 84 \$ 8,400 3/15 Purchase 300 96 28,800 7/20 Purchase 200 100 20,000 9/4 Purchase 300 112 33,600 12/2 Purchase 100 120 12,000 Total 1,000 \$102,800 (b) FIFO (1) Ending Inventory Date Units Unit Cost Total Cost 12/2 100 \$ 120 \$ 12,000 9/4 100 112 11,200 200 \$23,200 (2) Cost of Goods Sold Cost of goods available for sale \$102,800 Less: Ending inventory 23,200 Cost of goods sold \$79,600 LIFO (1) Ending Inventory Date Units Unit Cost Total Cost 1/1 100 \$84 \$8,400 3/15 100 96 9,600 200 \$18,000 (2) Cost of Goods Sold Cost of goods available for sale \$102,800 Less: Ending inventory 18,000 Cost of goods sold \$84,800 Proof of Cost of Goods Sold Date Units Unit Cost Total Cost 1/1 100 \$ 84 \$ 8,400 3/15 300 96 28,800 7/20 200 100 20,000 9/4 200 112 22,400 800 \$79,600 Proof of Cost of Goods Sold Date Units Unit Cost Total Cost 12/2 100 \$ 120 \$ 12,000 9/4 300 112 33,600 7/20 200 100 20,000

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AVERAGE COST (1) Ending Inventory \$102,800 ÷ 1,000 = \$102.80 Units Unit Cost Total Cost 200 \$102.80 \$20,560 (2) Cost of Goods Sold Cost of goods available for sale \$102,800 Less: Ending inventory 20,560 Cost of goods sold \$82,240 (c) (1) FIFO results in the highest inventory amount, \$23,200, as shown in (b) above.
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(Solution) Assignment for Chapter 6 - Assignment for...

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