ACC431 Lecture Notes - Lecture 2: Deferral, Income Statement
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1. The raw materialsaccount of Franklin Inc. reflected the following changes duringApril:
Openingbalance | 500 units @$10 | |
Received | 200 units @$12 | |
Issued | 400 units | |
Issued | 100 units | |
Received | 300 units @$15 |
Other costs duringthe month included the following:
Directlabor | $8,000 |
Factoryoverhead | 6,000 |
One thousand unitsof product were completed, of which 800 were sold and 200 remainedon hand. There was no beginning inventory in finished goods. Thecompany uses a perpetual inventory system.
a. | Using FIFO, what arethe end-of-month balances for each of the followingaccounts? | |
(1) | Raw MaterialsInventory | |
(2) | Finished GoodsInventory | |
(3) | Cost of GoodsSold | |
b. | Using LIFO, what arethe end-of-month balances for each of the followingaccounts? | |
(1) | Raw MaterialsInventory | |
(2) | Finished GoodsInventory | |
(3) | Cost of GoodsSold |