Units unit cost units sold unit cost cogs units sold

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Introductory Econometrics: A Modern Approach
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Chapter 14 / Exercise C2
Introductory Econometrics: A Modern Approach
Wooldridge
Expert Verified
UnitsUnit CostUnits SoldUnit CostCOGSUnits SoldUnit CostCOGSUnits in Ending InventoryUnit CostEnding Inventory ValueBeginning Inv. 140$6.00100$6.00$60040$6.00$2400$6.00$0Purchases:Jan. 2060$5.0040$5.0020020$5.00100Jan. 30180$4.50180$4.50810$600$440200$910Cost of Goods Sold - January 10Cost of Goods Sold - January 25Ending InventoryPerpetual FIFO DateJan. 1Beginning inventory$840Jan. 10Sales100 units @ $15.00 = $1,500Jan. 20Purchase300Jan. 25Sales80 units @ $15.00 = $1,200Jan. 30Purchase810380 units$1,950180 units$2,70060 units @ $5.00 = 180 units @ $4.50 = Units Acquired at CostUnits sold at RetailActivities140 units @ $6.00 = SpecificWeightedIdentificationAverageFIFOLIFOSales$2,700$2,700$2,700Cost of goods sold1,0251,0321,040Gross profit1,6751,6681,660Operating expenses1,2501,2501,250Income before tax425418410Income tax expense (40%)170167164Net income$255$251$246Income StatementsFor Month Ended January 31Laker CompanyExercise 5-­‐4
We have textbook solutions for you!
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Introductory Econometrics: A Modern Approach
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Chapter 14 / Exercise C2
Introductory Econometrics: A Modern Approach
Wooldridge
Expert Verified
5-5 Available for SaleDateUnitsUnit CostUnits SoldUnit CostCOGSUnits SoldUnit CostCOGSUnits in Ending InventoryUnit CostEnding Inventory ValueBeginning Inv.140$6.00100$6.00$60020$6.00$12020$6.00$120Purchases:Jan. 2060$5.0060$5.003000$5.000Jan. 30180$4.50180$4.50810$600$420200$930Cost of Goods Sold - January 10Cost of Goods Sold - January 25Ending InventoryPerpetual LIFO TotalDateJan. 1Beginning inventory$840Jan. 10Sales100 units @ $15.00 = $1,500Jan. 20Purchase300Jan. 25Sales80 units @ $15.00 = $1,200Jan. 30Purchase810380 units$1,950180 units$2,70060 units @ $5.00 = 180 units @ $4.50 = Units Acquired at CostUnits sold at RetailActivities140 units @ $6.00 = SpecificWeightedIdentificationAverageFIFOLIFOSales$2,700$2,700$2,700$2,700Cost of goods sold1,0251,0321,0401,020Gross profit1,6751,6681,6601,680Operating expenses1,2501,2501,2501,250Income before tax425418410430Income tax expense (40%)170167164172Net income$255$251$246$258Income StatementsFor Month Ended January 31Laker CompanyExercise 5-­‐4
5-6 SpecificWeightedIdentificationAverageFIFOLIFOSales$2,700$2,700$2,700$2,700Cost of goods sold1,0251,0321,0401,020Gross profit1,6751,6681,6601,680Operating expenses1,2501,2501,2501,250Income before tax425418410430Income tax expense (40%)170167164172Net income$255$251$246$258Income StatementsFor Month Ended January 31Laker Company1. Which method yields the highest net income?

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