k 6 HW - ConGung Thunezto.mheducation.com(3SavedHelpSave & ExitSubmitCheck my workE7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average CostLO7-2Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, theaccounting records provided the following information for product 1:Units1,970Unit Cost$6Inventory, December 31, prior yearFor the current year:Purchase, March 21Purchase, August 1Inventory, December 31, current year5,0502,8404,1308.9.Required:Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.(Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)FIFOLIFOAverage CostEnding inventoryCost of goods sold

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Description: k 6 HW - ConGung Thunezto.mheducation.com(3SavedHelpSave & ExitSubmitCheck my workE7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average CostLO7-2Nittany Company uses a periodic inventory system. At the end of

Periodic Inventory System In this method, Ending inventory only updates at the end of the period…

Answered: Ending inventory Cost of goods sold

Business

Accounting

Ending inventory Cost of goods sold

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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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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E7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost
LO7-2
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the
accounting records provided the following information for product 1:
Units
1,970
Unit Cost
$6
Inventory, December 31, prior year
For the current year:
Purchase, March 21
Purchase, August 1
Inventory, December 31, current year
5,050
2,840
4,130
8.
9.
Required:
Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.
(Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)
FIFO
LIFO
Average Cost
Ending inventory
Cost of goods sold

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Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company’s accountant provides Wanda with the following information, before any adjustment. Accounts receivable $ 10,800,000 Estimated percentage uncollectible 2 % Allowance for uncollectible accounts $ 108,000 (credit) Operating income $ 2,800,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $2,120,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts’ expectations will also help Wanda keep her job. 2-a. After the adjustment is recorded in Part 1, what is the revised amount of operating income? Revised operating income Will Outlet Flooring still meet analysts’…
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