7-33Chapter 7 Reporting and Analyzing Inventorya.b.C.Construct a projected balance sheet as of the end of December, Year 1.Construct financial forecasts of income statements, cash flows (direct method) and balancesheets for the next three years (through Year 4). Assume that your business would operate in atax jurisdiction that requires the use of FIFO for inventory. Would this opportunity meet yourfinancial objective?Suppose that your business would operate in a tax jurisdiction that allowed the use of LIFO forinventory. Would this opportunity meet your financial objective? Why?Ⓒ Cambridge Business PublishersLO7-2 M7-20. Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average CostAssume that Gode Company reports the following initial balance and subsequent purchase ofinventory.Beginning inventory...Inventory purchased during the year.Cost of goods available for saleb.2,500 units @ $100 each5,000 units @ $150 each7,500 unitsAssume that 4,250 units are sold during the year. Compute the cost of goods sold for the year andthe balance reported as ending inventory on its year-end balance sheet under the following inven-tory costing methods:a.FIFOLIFOAverage cost$ 250,000750,000$1,000,000C.

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Description: 7-33Chapter 7 Reporting and Analyzing Inventorya.b.C.Construct a projected balance sheet as of the end of December, Year 1.Construct financial forecasts of income statements, cash flows (direct method) and balancesheets for the next three years (thr

There are two inventory systems i.e., periodic inventory system and perpetual inventory system. The…

Business

Accounting

LO7-2 M7-20. Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost Assume that Gode Company reports the following initial balance and subsequent purchase of inventory. MBC Beginning inventory.... Inventory purchased during the year Cost of goods available for sale... 2,500 units @ $100 each 5,000 units @ $150 each 7,500 units $ 250,000 750,000 $1,000,000 Assume that 4,250 units are sold during the year. Compute the cost of goods sold for the year and the balance reported as ending inventory on its year-end balance sheet under the following inven- tory costing methods: a. FIFO b. LIFO c. Average cost

LO7-2 M7-20. Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost Assume that Gode Company reports the following initial balance and subsequent purchase of inventory. MBC Beginning inventory.... Inventory purchased during the year Cost of goods available for sale... 2,500 units @ $100 each 5,000 units @ $150 each 7,500 units $ 250,000 750,000 $1,000,000 Assume that 4,250 units are sold during the year. Compute the cost of goods sold for the year and the balance reported as ending inventory on its year-end balance sheet under the following inven- tory costing methods: a. FIFO b. LIFO c. Average cost

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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TB MC Qu. 05-131 (Algo) A company has the following products... A company has the following products in its ending Inventory. Compute lower of cost or market for inventory applied separately to each product Cost per Market per Unit Unit $ 726 $ 696 $ 526 $ 566 $ 676 $ 701 Product Quantity 10 15 20 Product A Product B Product C
B15.
Calculate cost of goods sold using the following information under the LIFO method of inventory: Beginning Inventory 12/1 Purchased 12/10 Purchased 12/15 Sold 12/25 $112,500 $200,000 $175,000 $62,500 2,500 units at $20 per unit 3,000 units at $25 per unit $2,500 units at $30 per unit $4,000 units for $50 each
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