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E6-7 nd cost IFO and E6-6 Moath Company reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 200
E6-7
nd cost IFO and E6-6 Moath Company reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 200 400 300 12 23 Purchase Purchase 5 $1,000 2,400 2,100 30 Inventory 100 Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO (b) Which costing method gives the higher ending inventory? Why? (c) Which method results in the higher cost of goods sold? Why? E6-7 Shawn Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Shawn had 75 units in ending inventory Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (b) Which cost flow method would result in the highest net income? (c) Which cost flow method would result in inventories approximating current cost in the balance sheet? (d) Which cost flow method would result in Shawn paying the least taxes in the first year? E6-8 Inventory data for Moath Company are presented in E6-6. Instructions (a) Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (b) Will the results in (a) be higher or lower than the results under (1) FIFO and (2) LIFO? (c) Why is the average unit cost not $6? entory E6-9 Elliott's Hardware reported cost of goods sold as follows Step by Step Solution
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