During 2015, Liberty Company has the following inventory transactions. Because trends change frequently, Liberty estimates that the
Question:
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Because trends change frequently, Liberty estimates that the remaining six units have a current replacement cost at December 31 of only $300 each.
Required:
1. Using FIFO with a periodic inventory system, calculate ending inventory and cost of goods sold.
2. Using LIFO with a periodic inventory system, calculate ending inventory and cost of goods sold.
3. Determine the amount of ending inventory to report using the lower-of-cost-or-market method. Record any necessary adjusting entry under
(a) FIFO
(b)LIFO.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Requirement 1 Date Transaction Number of units Unit cost Ending Inventory Oct 4 Purchase 6 400 2400 ...View the full answer
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Related Book For 
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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