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ACCOUNTING Essay Example
- Category:Finance & Accounting
- Document type:Assignment
- Level:High School
- Page:1
- Words:161
5ACCOUNTING
ACCOUNTING
Accounting
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Sold units 320
Weighted Average |
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80+85+90+100 =88.75 X 320 |
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ENDING INVENTORY |
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180 X 88.75 |
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ASSUMPTION
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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
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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 |
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difference |
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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 |
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NOVEMBER |
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DECEMBER |
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FEBRUARY |
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SEPTEMBER |
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0 |
0 |
0 |
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NOVEMBER |
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DECEMBER |
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0 |
0 |
0 |
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FEBRUARY |
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0 |
0 |
0 |
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2014 LIFO
INCOME STATEMENT
INCOME STATEMENT |
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GROSS PROFIT |
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BALANCE SHEET |
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INVENTORY |
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INCOME STATEMENT |
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GROSS PROFIT |
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BALANCE SHEET |
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INVENTORY |
References
Medibank Private, Medibank Private Share Offer ISBN No. 978-1-922096-87-6. (2015): 7-19