Exercise $6-6$ Specific identification cost flow assumption LO$2$ e$)$ cel

CHECK FIGURE: COGS $=$$$4,529\mathrm{.}50$

Use the information in Exercise $6-5.$ Assume that Car Armour specifically sold the following units:

$\backslash$table$[[$Jan$.10$:$,80,$units from beginning inventory$],[$Mar$.15$: $10,$units from beginning inventory, and,$],[$Oct$.5$: $200,$units from the July $28$ purchase, and,$],[,470,$units from the October $3$ purchase$]]$

Calculate cost to be assigned to ending inventory and cost of goods sold.

Exercise $6-7$ Income statement effects of alternative cost flow assumptions LO$3$

Use the data in Exercises $6-5$ and $6-6$ to construct comparative income statements for Car Armour $($year$-$end December $31,2020),$ similar to those shown in Exhibit $6\mathrm{.}8$ in the chapter. Assume that operating expenses are $$1,250.$

Which method results in the highest profit?

If costs were rising instead of falling, which method would result in the highest profit?

a$.$ FIFO

b$.$ Moving weighted average. $($Do not round your "Unit Cost" answers. Round all other intermediate and final answers to nearest whole dollar.$)$

Exercise $6-5$ Alternative cost flow assumptions$-$perpetual inventory system LO$2$ &$)$cel CHECK FIGURES: $3.$ COGS a$.$ $$5,527$ b$.$ $$5,476$

Car Armour sells car wash cleaners. Car Armour uses a perpetual inventory system and made purchases and sales of a particular product in $2020$ as follows:

$\backslash$table$[[$Jan$.1,$Beginning inventory..,$110$ units,@$,$$$7\mathrm{.}00,=,770],[$Jan$.10,$Sold...,$80$ units,@$,$$$15\mathrm{.}50,=,1,240],[$Mar$.7,$Purchased..,$300$ units,@$,$$$6\mathrm{.}30,=,1,890],[$Mar$.15,$Sold.................,$130$ units,@$,$$$15\mathrm{.}50,=,2,015],[$July $28,$Purchased $......................................................,550$ units,@$,$$$6\mathrm{.}10,=,3,355],[$Oct$.3,$Purchased $......................................................,500$ units,@$,$$$6\mathrm{.}00,=,3,000],[$Oct$.5,$Sold.....,$670$ units,@$,$$$15\mathrm{.}50,=,10,385]]$

$442$