Compute the 2020 cost of goods sold using the LIFO method. (Round per unit and final answer to 2 decimal paces, e.g. 35.57.) Cost of Goods Sold using the LIFO method eTextbook and Media What method would you recommend to the owner to minimize income taxes in 2020, using the inventory information for footballs as a guide? %24
Compute the 2020 cost of goods sold using the LIFO method. (Round per unit and final answer to 2 decimal paces, e.g. 35.57.) Cost of Goods Sold using the LIFO method eTextbook and Media What method would you recommend to the owner to minimize income taxes in 2020, using the inventory information for footballs as a guide? %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Skysong Sports began operations on January 2, 2020. The following stock record card for footballs was taken from the records at the
end of the year.
Units
Unit Invoice
Gross Invoice
Date
Voucher
Terms
Received
Cost
Amount
1/15
10624
Net 30
56
$ 24
$ 1,344
3/15
11437
1/5, net 30
71
19
1,349
6/20
21332
1/10, net 30
96
18
1,728
9/12
27644
1/10, net 30
90
14
1,260
11/24
31269
1/10, net 30
82
13
1,066
Totals
395
$ 6,747
A physical inventory on December 31, 2020, reveals that 113 footballs were in stock. The bookkeeper informs you that all the
discounts were taken. Assume that Skysong Football Shop uses the invoice price less discount for recording purchases.
Compute the December 31, 2020, inventory using the FIFO method. (Round per unit and final answer to 2 decimal paces, e.g. 35.57.)
Ending Inventory using the FIFO method
%24
Transcribed Image Text:Compute the 2020 cost of goods sold using the LIFO method. (Round per unit and final answer to 2 decimal paces, e.g. 35.57.)
Cost of Goods Sold using the LIFO method
eTextbook and Media
What method would you recommend to the owner to minimize income taxes in 2020, using the inventory information for
footballs as a guide?
%24
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