I need major help, I have got to the point in my accounting class


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I need major help, I have got to the point in my accounting class where everything I thought I understood, I no longer understand. Print Assignment_ Chapter 6 Homework __false.pdf Exercise 6­1 Tri­State Bank and Trust is considering giving Josef Company a loan. Before doing so, management decides that further discussions with Josef’s accountant may be desirable. One area of particular concern is the inventory account, which has a year­end balance of $290,000. Discussions with the accountant reveal the following. 1. Josef sold goods costing $30,000 to Sorci Company, FOB shipping point, on December 28. The goods are not expected to arrive at Sorci until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $90,000 that were shipped to Josef FOB destination on December 27 and were still in transit at year­end. 3. Josef received goods costing $22,000 on January 2. The goods were shipped FOB shipping point on December 26 by Solita Co. The goods were not included in the physical count. 4. Josef sold goods costing $30,000 to Natali Co., FOB destination, on December 30. The goods were received at Natali on January 8. They were not included in Josef’s physical inventory. 5. Josef received goods costing $40,000 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $290,000. Determine the correct inventory amount on December 31. Correct inventory $ Exercise 6­4 (Part Level Submission) Linda’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Linda’s purchases of Xpert snowboards during September is shown below. During the same month, 194 Xpert snowboards were sold. Linda’s uses a periodic inventory system. Date Units Unit Cost Total Cost Sept. 1 Explanation Inventory 42 $99 $ 4,158 Sept. 12 Purchases 72 105 7,560 Sept. 19 Purchases 32 108 3,456 Sept. 26 Purchases 80 112 Totals 8,960 226 $24,134 (a) Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods. FIFO The ending inventory at September 30 LIFO $ $ $ Cost of goods sold $ (b) For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold. FIFO The sum of ending inventory and cost of goods sold LIFO $ $ Exercise 6­7 (Part Level Submission) Lisa Company had 160 units in beginning inventory at a total cost of $20,000. The company purchased 320 units at a total cost of $49,600. At the end of the year, Lisa had 85 units in ending inventory. (a) Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average­cost. (Round average­cost per unit and final answers to 0 decimal places, e.g. 1,250.) FIFO The cost of the ending inventory The cost of goods sold LIFO Average­cost $ $ $ $ $ $ (b) Which cost flow method would result in the highest net income? (c) Which cost flow method would result in inventories approximating current cost in the balance sheet? (d) Which cost flow method would result in Lisa paying the least taxes in the first year? Exercise 6­9 Hamid’s Hardware reported cost of goods sold as follows. 2016 2017 $ 21,000 $ 33,000 Cost of goods purchased 151,500 180,000 Cost of goods available for sale 172,500 213,000 Beginning inventory Ending inventory 33,000 39,000 $139,500 Cost of goods sold $174,000 Hamid’s made two errors: (1) 2016 ending inventory was overstated $3,300, and (2) 2017 ending inventory was understated $6,350. Compute the correct cost of goods sold for each year. 2016 Cost of goods sold 2017 $ $ Exercise 6­11 Optix Camera Shop uses the lower­of­cost­or­market value for its inventory. The following data are available at December 31. Item Units Unit Cost Market Cameras: Minolta 5 $179 $159 12 145 172 Vivitar 14 132 101 Kodak 17 12

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