T f in a period of rising prices fifo results in the

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Financial and Managerial Accounting Using Excel for Success
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Chapter 8 / Exercise PR 8–6B
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
10. (T / F) In a period of rising prices, FIFO results in the lowest cost of goods sold.TRUE:Based on the information below and considering that this company paid $322,500 in cash to its suppliers during the year, what is the company's cost of goods sold for 2015? Assume that the only source of Accounts Payable is the purchase of inventory on credit.1/1/2015 12/31/2015Inventory$23,400$34,560Accounts payable $354,000$223,000Select one:a. $442,340 b. $322,500 c. $180,340 d. $311,340
FFS Clothing Store sells socks. During January 2014, its inventory records for one particular brand of socks were as follows:Quantity Price per pairTotalBeginning Inventory6 pairs$18 = $108
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Financial and Managerial Accounting Using Excel for Success
The document you are viewing contains questions related to this textbook.
Chapter 8 / Exercise PR 8–6B
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
Quantity Price per pairTotalJanuary 6 Purchase3 pairs$16= $48January 10 Sale5 pairsN/AJanuary 15 Purchase8 pairs$15= $120January 20 Sale10 pairsN/AJanuary 25 Purchase 4 pairs$22= $88See information for FFS Clothing Store above. Using this information, perpetual FIFO cost of goods sold is
ABC Inc. sells socks. During January 2016, its inventory records for one brand of its socks were as follows:Quantity Price per pairTotalBeginning Inventory10 pairs$20= $200January 6 Purchase4 pairs$25= $100
Quantity Price per pairTotalJanuary 10 Sale5 pairsN/AJanuary 15 Purchase7 pairs$30= $210January 20 Sale10 pairsN/AJanuary 25 Purchase 4 pairs$30= $120See information above. Using this information, the cost of goods sold using the periodic simple average cost method is
If ending inventory on the last day of the year is overstated by $14,000, what is the effect on Net income for the current year? Assume a tax rate of 0%.
If at the end of 2016, ending inventory is overstated, theSelect one:a. 2016 cost of goods sold is overstated. b. 2016 total assets are understated. c. 2016 net income is overstated. d. 2017 income will be overstated.
If ending inventory is overstated,gross profit would be overstated and hence net income would be overstated.This would mean that 2016 total assets would be overstated as well etc.ABC Inc. sells socks. During February 2016, its inventory records for one brand of its socks were as follows:Quantity Price per pairTotalBeginning Inventory10 pairs$20.00= $200February 6 Purchase4 pairs$25.00= $100February 10 Purchase5 pairs$27.40= $137February 15 Sale7 pairsN/ASee information above. Using this information, determine ending inventory under the weighted-average method. Assume the company used a periodic inventory costing system.

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