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Sheffield Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information:
Sheffield 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 10,200 $12 $122,400 10,200 $12 $122,400 15 17,000 16 272,000 [1] [2] [3] [4] (5) 21,000 [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 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 $566,000 $566,000 Cost of goods sold Gross profit Operating expenses 184,000 184,000 Income before income tax Income tax expense (30%) Net income (a) Fill in the missing amounts in the perpetual inventory schedule, assuming the use of the FIFO cost formula 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. 10,200 $12 $122,400 2 15 17,000 16 272,000 21,000 Cost of Goods Sold Cost (total units sold) $ Total
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