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a. Arnold, Inc. had the following inventory in fiscal 2016. The company wants to COMPARE the FIFO method of accounting for inventory against the LIFO method. Beginning Inventory, January 1, 60*14=840 2016: 60 units @ $14.00 Purchase 200 units @ $18.00 Purchase 50 units @ $13.50 200 18 3,600 50 13.50 675 160 19.75-3160 Purchase 160 units @ $19.75 Ending Inventory, December 8,275 31, 2016: 120 units b. What is the company's cost of goods sold for fiscal 2016 using the FIFO method? $8,275 c. What is the company's cost of goods sold using the LIFO method? $3,511 57.435

a. Arnold, Inc. had the following inventory in fiscal 2016. The company wants to COMPARE the FIFO method of accounting for inventory against the LIFO method. Beginning Inventory, January 1, 60*14=840 2016: 60 units @ $14.00 Purchase 200 units @ $18.00 Purchase 50 units @ $13.50 200 18 3,600 50 13.50 675 160 19.75-3160 Purchase 160 units @ $19.75 Ending Inventory, December 8,275 31, 2016: 120 units b. What is the company's cost of goods sold for fiscal 2016 using the FIFO method? $8,275 c. What is the company's cost of goods sold using the LIFO method? $3,511 57.435

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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pdi D6 of 14 10 WERE ✓ 3. love! Часни 1. Topic-COGS Cost of Goods Sold Using FIFO Method vs. LIFI Method - a. Arnold, Inc. had the following inventory in fiscal 2016. The company wants to COMPARE the FIFO method of accounting for inventory against the LIFO method. Beginning Inventory, January 1, 6014840 2016: 60 units @ $14.00 Purchase 200 units @ $18.00 Purchase 50 units @ $13.50 200 18 3,600 50 13.50 675 Purchase 160 units @ $19.75 Ending Inventory, December 8,275 31, 2016: 120 units 160 19.75 3160 b. What is the company's cost of goods sold for fiscal 2016 using the FIFO method? $8,275 c. What is the company's cost of goods sold using the LIFO method? $3,511 $7.435 LIFO 160 19.75-3,160 LIFO= 50 13.50-675 LIFO= 200 18 3,600 LIFO=7,435 How did you compute the Cost of Goods Sold? FIFO-840+3,600+675+3,160 $8,275
Transcribed Image Text:pdi D6 of 14 10 WERE ✓ 3. love! Часни 1. Topic-COGS Cost of Goods Sold Using FIFO Method vs. LIFI Method - a. Arnold, Inc. had the following inventory in fiscal 2016. The company wants to COMPARE the FIFO method of accounting for inventory against the LIFO method. Beginning Inventory, January 1, 6014840 2016: 60 units @ $14.00 Purchase 200 units @ $18.00 Purchase 50 units @ $13.50 200 18 3,600 50 13.50 675 Purchase 160 units @ $19.75 Ending Inventory, December 8,275 31, 2016: 120 units 160 19.75 3160 b. What is the company's cost of goods sold for fiscal 2016 using the FIFO method? $8,275 c. What is the company's cost of goods sold using the LIFO method? $3,511 $7.435 LIFO 160 19.75-3,160 LIFO= 50 13.50-675 LIFO= 200 18 3,600 LIFO=7,435 How did you compute the Cost of Goods Sold? FIFO-840+3,600+675+3,160 $8,275
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