$($example $-$ $$18\mathrm{.}7910)$

Average Cost per unit $=$

Ending Inventory:

If costs are rising, then......

a$)$ LIFO COGS is

$($greater or less than$)$ FIFO COGS

b$)$ LIFO ending inventory is

$($greater or less than$)$ FIFO ending

inventory

c$)$ Net Income for a company using LIFO will be

'greater or less

than$)$ a company that uses FIFO

Part $3$: Adjustments

Colin Construction Inc. started the month with $$12,500$ in unearned revenue. During the

month, Colin Construction completed $$3,600$ of services related to the unearned revenue.

What is the necessary adjusting entry?

If this adjustment is NOT made, the following are overstated, understated, or not

impacted:

Assets:

Revenue:

Liabilities:

Expense:

Stockholders' Equity:

Tyler Tech Co$.$ prepaid $$2,700$ for one year's worth of insurance on January $1^{st}$

$($$$225/$month$).$ What is the necessary adjusting entry to record $$225$ worth of prepaid

insurance which expired at the end of January.

If this adjustment is $NO{I}_{?}$ made, the tollowing are overstated, understated, or not

impacted:

Assets:

Revenue:

Liabilities:

Expense:

Stockholders' Equity:

Dunder Mifflin pays salaries of $$13,000$ per $5-$day work week. As of July $31,$ Dunder Mifflin

accrues $8,000$ of salaries. What is the necessary adjusting entry to record accrued

salaries?

If this adjustment is $)$

impacted:

Assets:

Revenue:

Liabilitie

Expense:

Stockholders' Equity: