Compute the value of ending inventory assuming state

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Chapter 14 / Exercise 19
Business English
Guffey/Seefer
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Compute the value of ending inventory assuming State uses the perpetual LIFO inventory costing method.
L.O. 1ModeratePage: 252179
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Business English
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Chapter 14 / Exercise 19
Business English
Guffey/Seefer
Expert Verified
103. The following data are available for the month of April for State Company:April 1 inventory120 units at $8.15 eachApril 10 purchase200 units at $8.20 eachApril 20 purchase410 units at $8.40 eachApril 25 purchase310 units at $8.50 eachState sold 630 units on April 23.Compute the value of ending inventory assuming State uses the perpetual FIFO inventory costing method.
L.O. 1ModeratePage: 251104. The following data pertain to Starr Company for the year ended December 31, 20X6:Beginning inventory balance$245,500Purchases of inventory on credit during year670,000Sales (60% on credit) during year750,000Cost of goods sold during year55% of salesPrepare all necessary journal entries under the perpetual inventory system to record purchases and sales for the year.
CHAPTER 6Accounting for Merchandise Inventory105. The following data are available for the month of March:March 1 balance20 units at $15 eachMarch 10 purchase40 units at $16 eachMarch 17 purchase30 units at $17.50 eachMarch 30 purchase25 units at $18 eachOn March 31, 35 units are on hand.Calculate cost of goods sold under the following methods:a) FIFOb) LIFOc)average cost (round per unit cost to the nearest cent, round final answer to the nearest dollar)
L.O. 3ModeratePage: 252,253106. State which inventory method would best meet the specific goal of management stated below. Show your answer by inserting the proper letter beside each statement.a)Specific unit costb) LIFOc)FIFO d)Average cost____________1) Management desires to properly match cost of goods sold with net sales revenue.____________2) Management desires to minimize the company’s ending inventory balance during a period of falling prices.____________3) The company sells rare, antique items.____________4) Management desires to show the current value inventory on the balance sheet.____________5) Management desires to minimize the company’s tax liability during a period of rising prices.181
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L.O. 3ModeratePage: 254

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