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Concord Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Purchases
Concord Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Purchases Cost of Goods Sold Ending Inventory Date Units Cost Total Units Cost Total Units Cost Total Oct. 2 10,800 $13 $140,400 10,800 $13 $140,400 15 18,000 17 306,000 [1] [2] [3] [4] [5] 29 22,400 [6] [7] [8] [9] [10] [11] [12] [13] The company accountant has prepared the following partial statement of income to help management understand the financial statement impact of each cost determination cost formula. FIFO Average Sales $577,000 $577,000 Cost of goods sold Gross profit Operating expenses 202,000 202,000 Income before income tax Income tax expense (30%) Net income Fill in the missing amounts in the perpetual inventory schedule, assuming the use of the FIFO cost formula. Purchases Date Units Cost Total Units Oct. 10,800 $13 $140,400 2 15 18,000 17 306,000 29 22,400 Cost of Goods Sold Cost (total units sold) $ CA LA Total Fill in the missing amounts in the perpetual inventory schedule, assuming the use of the FIFO cost formula. Sold Ending Inventory LA $ Total Units Cost 10,800 $13 +A $ Total $140,400
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