chapter 6 hw

# chapter 6 hw - Cost Total Amount Purchased May 1 30 \$8 \$240...

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ACC 281 Brief Exercise 6-1 (1) Included (2) Excluded (3) Included (4) Excluded Brief Exercise 6-3 Average cost method: 9500/1200 = \$7.91667 * 400 = \$3166.668 Brief Exercise 6-6 Lower Cost or Market Cameras 12,000 Camcorders 9,000 DVDs 12,800 Total 33,800 Brief Exercise 6-8 LIFO Reserve: Difference in the cost of FIFO and the cost of LIFO. \$130,733,000 + \$27,192,000 = \$157,925,000 Exercise 6-5 Ending Inventory: 95 – 78 = 17 units (a) FIFO: 17 * \$11 = \$187 (b) Average: \$930/95 = 9.789 * 17 = \$166.413 (c) LIFO: 17 * \$8 = \$136 Problem 6-3A Date # of Units
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Unformatted text preview: Cost Total Amount Purchased May 1 30 \$8 \$240 May 15 25 \$10 \$250 May 24 40 \$11 \$440 Total 95 \$950 Units Sold: 1,800 Current Inventory: 500 (a) COGS of 500 units (b) COGS of 1,800 units FIFO (100*12)+(400*11) = 5,600 (300*8)+(700*9)+(500*10)+(200*11)=15,900 LIFO (300*8)+(200*9) = 4,200 (100*12)+(600*11)+(500*10)+(500*9)=17,300 Average (21500/2300)*500=4,673.91 (21500/2300)*1800 = 16,826.087 (c) The income statement will be the lowest with LIFO. The balance sheet will be lowest with FIFO....
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