Harrington Company had the following data for inventory during a recent year: Assume that Harrington uses a
Question:
Harrington Company had the following data for inventory during a recent year:
Assume that Harrington uses a periodic inventory accounting system.
Required:
1. Using the FIFO, LIFO, and average cost methods, compute the ending inventory and cost of goods sold. (Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.)
2. Which method will produce the most realistic amount for income? For inventory?
3. Which method will produce the lowest amount paid fortaxes?
Transcribed Image Text:
Units Cost per Unit 9.00 9.60 10.30 10.80 11.10 Total Cost $4,500 Beginning inventony Purchase 1, 1/28 Purchase 2, 5/2 Purchase 3, 8/13 Purchase 4, 11/9 Total purchases Goods available for sale Less: Sales Ending inventory 500 1,600 1,200 1,400 1,100 $15,360 12,360 15,120 12,210 5,300 5,800 5,240 560 55,050
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1 FIFO Cost of goods sold 5240 units 500 900 4500 1600 960 15360 1200 1030 12360 1400 1080 15120 540 ...View the full answer
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Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger
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