Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Textbook Question
Chapter 6A, Problem 3E
(Compute amounts for the GAAP inventory methods—periodic system) Suppose Synthetix Corporation’s inventory records for a particular computer chip indicate the following at October 31:
| Oct 1 | Beginning inventory .................... | 4 units @ $60 = $240 |
| 8 | Purchase ....................................... | 3 units @ $60 = 180 |
| 15 | Purchase ....................................... | 12 units @ $70 = 840 |
| 26 | Purchase ....................................... | 1 units @ $80 = 80 |
The physical count of inventory at October 31 indicates that five units of inventory are on hand.
Requirements
Compute ending inventory and cost of goods sold, using each of the following methods
1. Specific unit cost, assuming three $60 units and two $70 units are on hand
2. Average cost (round average unit cost to the nearest cent)
3. First-in, first-out
4. Last-in, first-out
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Chapter 6A Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 6A - (Record inventory transactions in the periodic...Ch. 6A - (Compute cost of goods sold and prepare the income...Ch. 6A - (Compute amounts for the GAAP inventory...Ch. 6A - (Journal inventory transactions in the periodic...Ch. 6A - (Compute cost of goods sold and gross profit on...Ch. 6A - (Record transactions in the periodic system;...
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