E6-19A – Average Cost, FIFO, & LIFO
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
Using average-cost, FIFO, and LIFO – find the cost of goods sold and ending inventory.
Using average-cost, FIFO, and LIFO – find the cost of goods sold and ending inventory.
Find gross profit under both FIFO and LIFO.
Determine how much inventory should be purchased during the upcoming year to reach budget.
Identify another reason that owners and managers use the gross profit method to estimate inventory.
Given the beginning and ending inventory, sales, and purchases – make the journal transactions under the perpetual system and find the ending inventory and gross profit.
Determine how much inventory should be purchased during the upcoming year to reach budget.
Given the information on inventory, net purchases and sales, and gross profit percent – estimate cost of inventory and find another reason managers use gross profit method to estimate inventory.
Given the truck cost and notes payable – find the accrued interest, final payment, and interest expense for both years.
Given the purchased inventory cost and the short-term note payable – prepare the entry for inventory interest, and note plus interest.
Given the accrued warranty payable, sales revenue, percent of sales, and amount paid to satisfy claims – prepare the entry for warranty expense, the income statement, and balance sheet.