Using FIFO method, calculate (i) cost of goods sold, (ii) ending inventory, and (ii) gross profit. (Assume sales returns had a cost of $21 and purchase returns had a cost of $24.) Cost of goods sold Ending Inventory Gross Profit Using Average method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii gross profit. (Round average cost to 3 decimal places, eg. 5.252 and final answers to 2 decimal places, eg 5.25.) Cost of goods sold Ending Inventory $ Gross Profit Compare results for the two cost formulas. (1) Ina period of rising costs, the average cost formula results in the cost of goods sold and gross (2) In period of rising costs, on the statement of financial position, FIFO gives the ending inventory (representir %24 %24 %24 %24 %24 %24
Using FIFO method, calculate (i) cost of goods sold, (ii) ending inventory, and (ii) gross profit. (Assume sales returns had a cost of $21 and purchase returns had a cost of $24.) Cost of goods sold Ending Inventory Gross Profit Using Average method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii gross profit. (Round average cost to 3 decimal places, eg. 5.252 and final answers to 2 decimal places, eg 5.25.) Cost of goods sold Ending Inventory $ Gross Profit Compare results for the two cost formulas. (1) Ina period of rising costs, the average cost formula results in the cost of goods sold and gross (2) In period of rising costs, on the statement of financial position, FIFO gives the ending inventory (representir %24 %24 %24 %24 %24 %24
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 67APSA: Inventory Costing Methods Andersons Department Store has the following data for inventory,...
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