Explanation Sept. 1 Beginning inventory 16 Purchases Units Unit costs Total Cost $50 Date $800 Sept. 5 50 42 2,100 Sept. 16 Purchases Sept. 27 Purchases 50 1,950 1,295 39 35 37

Cornerstones of Financial Accounting
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Author:Jay Rich, Jeff Jones
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Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 16MCQ: ( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory...
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Question : Alhekema Company uses the periodic inventory system to account for inventories. It reports display the following for the month of September, which 95 units were sold. Instructions: a) Determine the ending inventory and the cost of goods sold using: FIFO method ، LIFO method، Average-cost method b) For the current year, the management of Alhekema Company asks your help in identifying which method produce higher income taxes.
Explanation
Beginning inventory 16
Purchases
Units Unit costs Total Cost
$50
Date
Sept. 1
Sept. 5
Sept. 16 Purchases
Sept. 27 Purchases
$800
50
42
2,100
1,950
50
39
35
37
1,295
Transcribed Image Text:Explanation Beginning inventory 16 Purchases Units Unit costs Total Cost $50 Date Sept. 1 Sept. 5 Sept. 16 Purchases Sept. 27 Purchases $800 50 42 2,100 1,950 50 39 35 37 1,295
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