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Stewart Company Sold 180 Units @ $320 Each on October

Question 141

Essay

Stewart Company sold 180 units @ $320 each on October 31, 2014. Cash selling and administrative expenses were $15,000. The following information is also available:  Beginning inventory 30 units @$180 Feb 3 purchase 60 units @$190 June 2 purchase 70 units @$220 Oct 1 purchase 40 units @$230\begin{array}{ll}\text { Beginning inventory } & 30 \text { units } @ \$ 180 \\\text { Feb } 3 \text { purchase } & 60 \text { units } @ \$ 190 \\\text { June 2 purchase } & 70 \text { units } @ \$ 220 \\\text { Oct } 1 \text { purchase } & 40 \text { units } @ \$ 230\end{array}
The company's income tax rate is 40%.
Required:
a) Determine the amount of cost of goods sold using:
FIFO
LIFO
Weighted Average
b) Determine the amount of ending inventory using:
FIFO
LIFO
Weighted Average
c) Determine the company's net income (after income taxes) using:
FIFO
LIFO

Correct Answer:

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a) Cost of Goods Sold blured image blured image b) FIF...

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