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# Inventory cost

by | Jul 4, 2021 | Assignment Help

Use the following information to calculate the ending inventory cost on December 31 and the cost of goods sold for December under each of three methods:

(a) FIFO

(b) LIFO

(c) Weighted Average. Assume the periodic inventory system is used. (Show your work.)Dec.  1 Beginning inventory 1,000 units @ \$75 Purchased 3,000 units @ \$7.1018 Purchased 4,000 units @ \$7.1524 Purchased 2,000 units @ \$7.2031 Ending inventory 2,500 units2.

Assuming that ending inventory for 20×7 was overstated, indicate whether each of the following will be understated (U), overstated (O), or not affected (N)._

1. Beginning inventory for 20x8_

2. Cost of goods sold for 20×7

3. Stockholders’ equity at the end of 20×8

4. Income before income taxes for 20×8

5. Stockholders’ equity at the end of 20×7

6. Cost of goods sold for 20×8

7. Income before income taxes for 20×7

#### This is a sample question

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