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Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275 Exercise 84
Use the data and results from Exercise 6-5 to prepare comparative income statements for the month of January for the company similar to those shown in Exhibit 6.8 for the four inventory methods. Assume expenses are $1,250, and that the applicable income tax rate is 40%. (Round amounts to cents.)
Required
1. Which method yields the highest net income
2. Does net income using weighted average fall between that using FIFO and LIFO
3. If costs were rising instead of falling, which method would yield the highest net income
Reference: Exercise 6-5
Refer to the information in Exercise 6-3 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using ( a ) specific identification, ( b ) weighted average, ( c ) FIFO, and ( d ) LIFO. (Round per unit costs and inventory amounts to cents.)
Required
1. Which method yields the highest net income
2. Does net income using weighted average fall between that using FIFO and LIFO
3. If costs were rising instead of falling, which method would yield the highest net income
Reference: Exercise 6-5
Refer to the information in Exercise 6-3 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using ( a ) specific identification, ( b ) weighted average, ( c ) FIFO, and ( d ) LIFO. (Round per unit costs and inventory amounts to cents.)
Explanation
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By preparing four method of inventory co...
Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
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