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E8-11 (LO3) (FIFO, LIFO and Average-Cost Determination) John Adams Company's record of transactions for the month of April was as follows, Purchases Sales April 1 (balance on hand) 600 @ $6.00 1,500 @ April 3 500 @ $10.00 1,400 @ 4. 6.08 9 10.00 8 800 @ 6.40 11 600 @ 11.00 13 21 1,200 @ 700 @ 6.50 23 1,200 @ 900 @ 11.00 6.60 27 12.00 29 500 @ 6.79 4,600 5,300 Instructions (a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and (2) average-cost. (b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO. (c) Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO,

E8-11 (LO3) (FIFO, LIFO and Average-Cost Determination) John Adams Company's record of transactions for the month of April was as follows, Purchases Sales April 1 (balance on hand) 600 @ $6.00 1,500 @ April 3 500 @ $10.00 1,400 @ 4. 6.08 9 10.00 8 800 @ 6.40 11 600 @ 11.00 13 21 1,200 @ 700 @ 6.50 23 1,200 @ 900 @ 11.00 6.60 27 12.00 29 500 @ 6.79 4,600 5,300 Instructions (a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and (2) average-cost. (b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO. (c) Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO,

Cornerstones of Financial Accounting
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 36BE: Effects of Inventory Costing Methods Refer to the information for Tyler Company above. Required: 1....
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(b) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO? (c) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO? (d) Why is it stated that LIFO usually produces a lower gross profit than FIFO? E8-11 (LO3) (FIFO, LIFO and Average-Cost Determination) John Adams Company's record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) 600 @ $6.00 500 @ $10.00 1,400 @ 600 @ April 3 4. 1,500 @ 800 @ 6.08 9 10.00 11.00 11.00 6.40 11 1,200 @ 700 @ 500 @ 13 6.50 23 1,200 @ 900 @ 21 6.60 27 12.00 29 6.79 4,600 5,300 Instructions (a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and (2) average-cost. (b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO. () Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO. (d) In an inflationary period, which inventory method-FIFO, LIFO, average-cost--will show the highest net income? E8-12 (LO3) (FIFO, LIFO, Average-Cost Inventory) Shania Twain Company was formed on December 1.2016. The following
Transcribed Image Text:(b) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO? (c) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO? (d) Why is it stated that LIFO usually produces a lower gross profit than FIFO? E8-11 (LO3) (FIFO, LIFO and Average-Cost Determination) John Adams Company's record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) 600 @ $6.00 500 @ $10.00 1,400 @ 600 @ April 3 4. 1,500 @ 800 @ 6.08 9 10.00 11.00 11.00 6.40 11 1,200 @ 700 @ 500 @ 13 6.50 23 1,200 @ 900 @ 21 6.60 27 12.00 29 6.79 4,600 5,300 Instructions (a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and (2) average-cost. (b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO. () Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO. (d) In an inflationary period, which inventory method-FIFO, LIFO, average-cost--will show the highest net income? E8-12 (LO3) (FIFO, LIFO, Average-Cost Inventory) Shania Twain Company was formed on December 1.2016. The following
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