Compute ending inventory at September 30 using FIFO, LIFO, and moving-average. (Note: For moving-average, round unit cost to three decimal places.) Determine effects of inventory errors. *E6.18 (LO 5), AN Dowell Hardware reported cost of goods sold as follows. Beginning inventory Cost of goods purchased Cost of goods available for sale Less: Ending inventory Cost of goods sold 2025 $30,000 175,000 205,000 37,000 $168,000 2024 $20,000 164,000 184,000 30,000 $154,000 Dowell made two errors: 1. 2024 ending inventory was overstated by $2,000. 2. 2025 ending inventory was understated by $5,000. Instructions Compute the correct cost of goods sold for each year. Prepare correct income statements.

Compute ending inventory at September 30 using FIFO, LIFO, and moving-average. (Note: For moving-average, round unit cost to three decimal places.) Determine effects of inventory errors. *E6.18 (LO 5), AN Dowell Hardware reported cost of goods sold as follows. Beginning inventory Cost of goods purchased Cost of goods available for sale Less: Ending inventory Cost of goods sold 2025 $30,000 175,000 205,000 37,000 $168,000 2024 $20,000 164,000 184,000 30,000 $154,000 Dowell made two errors: 1. 2024 ending inventory was overstated by $2,000. 2. 2025 ending inventory was understated by $5,000. Instructions Compute the correct cost of goods sold for each year. Prepare correct income statements.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose that Ralph Lauren Company reports the following for the month of June. Date June 1 12 23 30 Explanation Units Inventory Purchase Purchase Inventory Cost of the ending inventory 360 Cost of goods sold 660 860 390 +A Unit Cost LA $5 6 7 (a) Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 730 units occurred on June 15 for a selling price of $8 and a sale of 760 units on June 27 for $9. (Round average cost per unit to 3 decimal places, e.g. 5.254 and final answers to O decimal places, e.g. 2,520.) Total Cost FIFO $1,800 3,960 6,020 LA $ LIFO LA $ Moving Average
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N5. Account
A. First In, First Out Number of Units Dollar Per Unit Value Total Value Cost of Goods Sold .. ... B. Last In, First Out Number of Units Dollar Per Unit Value Total Value Cost of Goods Sold ... ... C. Weighted Average Number of Units Dollar Per Unit Value Total Value Cost of Goods Sold ... ...
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