6. A company's purchases/sales are as follows: • Beginning inventory 1st purchase • 2nd purchase 3rd purchase ● ● Units 60 units 80 units 70 units 90 units Price Per Unit $130 $150 $200 $250 • Sales throughout the year 205 units • Operating expenses other than COGS are $13,000 $300 selling price a. What is ending inventory using the weighted average method ( b. What is ending inventory under the LIFO method? Also, prepare an income statement using the LIFO method (ignore taxes), including subtotals for both gross margin and operating income.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 4BE: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...
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6. A company's purchases/sales are as follows:
• Beginning inventory
● 1st purchase
• 2nd purchase
•
3rd purchase
Units
60 units
●
80 units
70 units
90 units
Price Per Unit
$130
205 units
$150
$200
• Sales throughout the year
Operating expenses other than COGS are $13,000
$250
$300 selling price
a. What is ending inventory using the weighted average method (
b. What is ending inventory under the LIFO method? Also, prepare an income statement
using the LIFO method (ignore taxes), including subtotals for both gross margin and
operating income.
Transcribed Image Text:6. A company's purchases/sales are as follows: • Beginning inventory ● 1st purchase • 2nd purchase • 3rd purchase Units 60 units ● 80 units 70 units 90 units Price Per Unit $130 205 units $150 $200 • Sales throughout the year Operating expenses other than COGS are $13,000 $250 $300 selling price a. What is ending inventory using the weighted average method ( b. What is ending inventory under the LIFO method? Also, prepare an income statement using the LIFO method (ignore taxes), including subtotals for both gross margin and operating income.
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