ACCT 200 Outline of Last Lecture I What companies can do involving inventory II Methods III Accounts receivable turnover IV Turnover V Inventory Turnover VI Homework EP 1 Outline of Current Lecture I Homework 6 14 II Homework 6 15 III Homework 6 16 IV Homework 9 10 V Homework 9 11 Current Lecture I II Homework 6 14 200 units for sale total cost 148 800 units available for sale 48 152 units sold a 48 unsold units at 825 39 600 b 27 unsold units at 600 16 200 21 unsold units at 690 14 490 TOTAL 30 690 c 48 unsold units at 744 35 712 Homework 6 15 150 units total cost 29 250 37 ending inventory 113 sold a FIFO ending inventory 29250 21522 7 728 These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute III IV V b Cost of goods sold 22590 29250 22590 6 660 c 29250 150 195 113 x 195 22 035 29250 22035 7215 Homework 6 16 a FIFO inventory LIFO inventory b FIFO cost of goods sold LIFO cost of goods sold c FIFO net income LIFO net income d FIFO income tax LIFO income tax e The company can pay less taxes using LIFO Homework 9 10 a Bassett 82 500 Fox 380 000 Bassett A R turnover 8 8 Fox A R turnover 6 5 b Bassett has the higher turnover meaning it takes them less time to collect their receivables Homework 9 11 a Current Year 420000 550000 2 485000 5820000 485000 12 0 Prior Year 400000 420000 2 410000 4305000 410000 10 5 b The business has improved by being able to turnover inventory more quickly than in the prior year
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