15. Use the following information to calculate cost of goods sold for April under each of three methods: (a) FIFO,

(b) LIFO, and (c) average-cost. Assume the periodic inventory system is used. (Show your work.)

Apr. 1 Beginning inventory 90 units @ $40

8 Sales 70 units

17 Purchases 150 units @ $42

24 Sales 110 units

30 Purchases 60 units @ $44

16. Inlet Sailboats reports income before income taxes of $80,000 during 20x3. If beginning inventory was overstated by $7,000 and ending inventory was understated by $8,000, calculate corrected income before income taxes for the year. (Show your work.)

17. Assuming that ending inventory for 20x5 was understated, indicate whether each of the following will be understated (U), overstated (O), or not affected (N).

_____ 1. Beginning inventory for 20x6

_____ 2. Cost of goods sold for 20x5

_____ 3. Owners equity at the end of 20x6

_____ 4. Income before income taxes for 20x6

_____ 5. Owners equity at the end of 20x5

_____ 6. Cost of goods sold for 20x6

_____ 7. Income before income taxes for 20x5