ACCOUNTING Essay Example

5ACCOUNTING

ACCOUNTING

Accounting

  1. Sold units 320

Weighted Average

80+85+90+100 =88.75 X 320

ENDING INVENTORY

180 X 88.75

  1. ASSUMPTION

  1. The principal I would adapt in calculation the COGS would be LIFO as it would reduce the tax charged on the goods hence increased cash flow of the firm

According to GAAPS it also the method recommended for valuing the stock or inventory

  1. Difference is 36600 has the company has to incur a loss of 36600 has the the selling price has been reduced to 75 per unit

profit /loss

difference

  1. The value shown is 14700. This has no effect as regardless the decrease of the price the goods are recorded on cost they were bought

SEPTEMBER

NOVEMBER

DECEMBER

FEBRUARY

SEPTEMBER

0

0

0

NOVEMBER

DECEMBER

0

0

0

FEBRUARY

0

0

0

2014 LIFO

INCOME STATEMENT

INCOME STATEMENT

GROSS PROFIT

BALANCE SHEET

INVENTORY

INCOME STATEMENT

GROSS PROFIT

BALANCE SHEET

INVENTORY

References

Medibank Private, Medibank Private Share Offer ISBN No. 978-1-922096-87-6. (2015): 7-19