E6.8 (LO 2), AP Lisa Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of S26,000. At the end of the year, Lisa had 80 units in ending inventory. Units Unit Cost Total Cost Explanation Beginning Inventory 100 10,000 Purchase 200 26,000 Ending Inventery NO Cost of Goods Available for Sale Instructions a Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. b. Which cost flow method would result in the highest net income? e. Which cost flow method would result in inventories approximating current cost in the balance sheet? d. Which cost flow method would result in Lisa paying the loast taxes? Part A 1. FIFO Cost of Goods Sold Units Unit Cost Tetal Cost Total Cost of Goods Sold Ending Inventory Units Unit Cost Tetal Cost Total Ending laventory

E6.8 (LO 2), AP Lisa Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of S26,000. At the end of the year, Lisa had 80 units in ending inventory. Units Unit Cost Total Cost Explanation Beginning Inventory 100 10,000 Purchase 200 26,000 Ending Inventery NO Cost of Goods Available for Sale Instructions a Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. b. Which cost flow method would result in the highest net income? e. Which cost flow method would result in inventories approximating current cost in the balance sheet? d. Which cost flow method would result in Lisa paying the loast taxes? Part A 1. FIFO Cost of Goods Sold Units Unit Cost Tetal Cost Total Cost of Goods Sold Ending Inventory Units Unit Cost Tetal Cost Total Ending laventory

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Description: E6.1E6.2E6.7E6.8E6.11E6.8 (LO 2), AP Lisa Company had 100 units in beginning inventory at a total cost of S10,000. The companypurchased 200 units at a total cost of S26,000, At the end of the vear. Lisa had 80 units in ending inventory.ExplanationBe

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 10P: LIFO and Inventory Pools On January 1, 2016, Grover Company changed its inventory cost flow method...

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