Q3: LT sells eycles. During the current year, Land Travel purchased ten of these cycles at the following costa Unita Purchased Unit Cost Total Cost Purchase Date Apr. 1 Apr. 17 May 5. 3 Rs. 3,700 3,900 4,000 Rs. 11,100 15,600 12,000 Rs. 38,700 4 3 10 On April 25, LT sold four cycles. The remaining six cycles remained in inventory at June 30, the end of LT fiscal year. Instructions III. Prepare inventory subsidiary ledger under FIFO, LIFO and average inventory valuation method. IV. Prepare journal entry for April 25 sales and relevant cost of goods sold under each of the method. V. Which of three cash flow assumption will result in Land Travel reporting highest net income for the current year?

Q3: LT sells eycles. During the current year, Land Travel purchased ten of these cycles at the following costa Unita Purchased Unit Cost Total Cost Purchase Date Apr. 1 Apr. 17 May 5. 3 Rs. 3,700 3,900 4,000 Rs. 11,100 15,600 12,000 Rs. 38,700 4 3 10 On April 25, LT sold four cycles. The remaining six cycles remained in inventory at June 30, the end of LT fiscal year. Instructions III. Prepare inventory subsidiary ledger under FIFO, LIFO and average inventory valuation method. IV. Prepare journal entry for April 25 sales and relevant cost of goods sold under each of the method. V. Which of three cash flow assumption will result in Land Travel reporting highest net income for the current year?

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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