Help For this question Question Six: If the cost of an item of inventory is $50, the current replacement cost is $45, and the sales price is$65, the amount included in inventory according to the lower of cost or market is----------Question seven: For each of the independent events listed below, analyze the impact on the indicated items at theend of the current year by placing the appropriate code letter in the box under each item.O = item is overstatedU = item is understatedCode:NA = item is not affectedOwner'sCost ofNetEventsAssetsEquityGoods SoldIncome1. A physical count of goods on hand at theend of the current year resulted in some goodsbeing counted twice.2. The ending inventory in the previousperiod was overstated.3. Goods purchased on account in Decemberof the current year and shipped FOB shippingpoint were recorded as purchases, but werenot included in the count of goods on hand onDecember 31 because they had not arrivedby December 31.4. Goods purchased on account in Decemberof the current year and shipped FOBdestination were recorded as purchases, butwere not included in the count of goods onhand on December 31 because they had notarrived by December 31.5. The internal auditors discovered that theending inventory in the previous period wasunderstated $15,000 and that the endinginventory in the current period wasoverstated$25,000.

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Question Six: If the cost of an item of inventory is $50, the current replacement cost is $45, and the sales price is $65, the amount included in inventory according to the lower of cost or market is-------------

Question Six: If the cost of an item of inventory is $50, the current replacement cost is $45, and the sales price is $65, the amount included in inventory according to the lower of cost or market is-------------

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 63E: ( Appendix 6B) Inventory Costing Methods: Periodic Inventory System The inventory accounting records...

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( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of goods sold under FIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
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