Oak Tree Ltd. Inventory records for a particular development program show the following at October 31,...
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Oak Tree Ltd. Inventory records for a particular development program show the following at October 31, 2016: Oct 1 Beginning inventory 15 Purchase 26 Purchase 10 units @ 60 units @ 70 units @ $0.60 = 0.65= 0.70= $6 39 49 At October 30, sold 120 units of these programs. Oak Tree Ltd. uses the perpetual inventory system. Compute cost of goods sold and ending inventory, using each of the following methods: • Specific unit cost. • Weighted-average cost • First-in, first out cost Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold? Oak Tree Ltd. Inventory records for a particular development program show the following at October 31, 2016: Oct 1 Beginning inventory 15 Purchase 26 Purchase 10 units @ 60 units @ 70 units @ $0.60 = 0.65= 0.70= $6 39 49 At October 30, sold 120 units of these programs. Oak Tree Ltd. uses the perpetual inventory system. Compute cost of goods sold and ending inventory, using each of the following methods: • Specific unit cost. • Weighted-average cost • First-in, first out cost Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold?
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ANSWER Cost of goods sold using the specific unit cost method 6 ... View the full answer
Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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