Homework Answers
Ans : Option B is correct
During a period of rising prices, LIFO implies that a firm is selling the higher cost , never inventory first leaving the lower cost older inventory on the balance sheet.
Example .
1/1/19 cost of purchase - $ 10
1/2/19 cost of purchase - $ 20
1/5/19 cost of inventory - $ 30
1/10/19 cost of inventory - $ 40
suppose LIFO is used. inventory that had higher cost are sold and inventory that had lesser cost are left at balance sheet date
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please help answer this question, thank you.
Discussion Board Week 2 Question - Why choose LIFO? DD Studies have found that most companies have adopted LIFO inventory costing. Consider this: assuming a period of increasing prices, using FIFO would charge lower cost inventory to Cost of Goods Sold - which means reporting a higher profit - while keeping the higher cost (newer) items on the Balance Sheet as inventory. So, with FIFO I would show higher profit on the Income...
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Brief Exercise 6-3 x Your answer is incorrect. Try again. In its first month of operations, Marigold Corp. made three purchases of merchandise in the following sequence: (1) 110 units at $9, (2) 420 units at $10, and (3) 110 units at $11. Assuming there are 270 units on hand, compute the cost of the ending inventory under the (a) FIFO method and (b) LIFO method. Marigold uses a periodic inventory system. FIFO (a) Cost of the ending inventory 2970...
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I need help to answer these question
Chapter 7 Inventories 377 PE 7-5A Periodic inventory using FIFO, LIFO, and weighted average cost methods OBJ. 4 The units of an item available for sale during the year were as follows: Jan. 1 Aug. 7 Dec. 11 Available for sale Inventory Purchase Purchase 12 units at $5,400 18 units at $6,000 15 units at $6,480 45 units $ 64,800 108,000 97,200 $270,000 There are 14 units of the item in the physical...
PLEASE CORRECT WRONG ANSWERS.
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Can u help me on #12?
or pan. Once a method has Do you been selected, what accounting requirement applies? FIFO and LIFO method 10. Which assumed inventory cost flow method: inventory system. Do *21. How does the ave a. usually parallels the actual physical flow of merchandise? tween a perpetual in b. divides cost of goods available by total units available for sale 22. When is it nece to determine a unit cost? *23. Both the gross c....
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