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What amount should White report as Cost of Goods Sold
What amount should White report as Cost of Goods Sold 1. Chess Top uses the periodic inventory system. For the current month, the beginning inventory consisted of 200 units that cost $65 each. During the month, the company made two purchases: 300 units at $68 each and 150 units at $70 each. Chess Top also sold 500 units during the month. Using the LIFO method, what is the amount of cost of goods sold for the month? a. $33,770. b. $32,500. c. $34,150. d. $33,400. 2. Black Corporation uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2010 was $60,000. The balance in the same account at the end of 2011 is $90,000. Black- Cost of Goods Sold account has a balance of $450,000 from sales transactions recorded during the year. What amount should Black report as Cost of Goods Sold in the 2011 income statement? a. $420,000. b. $450,000. c. $480,000. d. $540,000. 3. White Corporation uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2010 was $80,000. The balance in the same account at the end of 2011 is $120,000. White- Cost of Goods Sold account has a balance of $600,000 from sales transactions recorded during the year. What amount should White report as Cost of Goods Sold in the 2011 income statement? a. $560,000. b. $600,000. c. $640,000. d. $720,000. 4. Milford Company had 400 units of “Tank†in its inventory at a cost of $4 each. It purchased 600 more units of “Tank†at a cost of $6 each. Milford then sold 700 units at a selling price of $10 each. The LIFO liquidation overstated normal gross profit by a. $ -0- b. $200. c. $400. d. $600. 5. Nichols Company had 400 units of “Dink†in its inventory at a cost of $6 each. It purchased 600 more units of “Dink†at a cost of $9 each. Nichols then sold 700 units at a selling price of $15 each. The LIFO liquidation overstated normal gross profit by a. $ -0- b. $300. c. $600. d. $900. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help
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06 May 2016
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What amount should White report as Cost of Goods Sold
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