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The following information is available for ACT230 Company: Beginning inventory First purchase 600 units at $4 900 units at $6 500 units at $7
The following information is available for ACT230 Company: Beginning inventory First purchase 600 units at $4 900 units at $6 500 units at $7 Second purchase Assume that ACT 230 uses a periodic inventory system and that there are 700 units left at the end of the month. Total sales revenue is $15,000 for the month. Instructions Compute the cost of ending inventory, cost of goods sold, and gross profit under the (a) FIFO method. (b) LIFO method. (c) Average-cost method.
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a FIFO Method Under the FIFO method the cost of ending inventory is based on the cost of the most recent purchases while the cost of goods sold is bas...Get Instant Access to Expert-Tailored Solutions
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