CD
Answered
Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method. Would income have been greater or less?
On Jun 15, 2024
1. FIFO: Ending inventory $3,660\$ 3,660$3,660
300 units @$8=$2,400180 units @$7480 units =1,260$3,660\begin{array}{lll}300 \text { units } @ \$ 8 & = & \$ 2,400 \\\frac{180 \text { units } @ \$ 7}{480 \text { units }} & = & \frac{1,260}{\$ 3,660}\end{array}300 units @$8480 units 180 units @$7==$2,400$3,6601,260
2. Average Cost: Ending inventory $3,216\$ 3,216$3,216
$6,700÷1,000=$6.70\$ 6,700 \div 1,000 = \$ 6.70$6,700÷1,000=$6.70 per unit ×480\times 480×480 units =$3.216‾‾= \underline { \underline { \$ 3.216 } }=$3.216 Income would have been $880 ($3920 vs. $3040) greater if the company used FIFO instead of LIFO.
CD
Answered
Describe installment notes and the nature of the typical payment pattern.
On May 01, 2024
Installment notes are agreements to repay borrowed amounts over several periods through a series of payments.The most common type of note requires an equal payment which is allocated between principal and interest.With equal total payments,the cash payment remains constant over the life of the note while the amount applied to principal increases over time and the amount of interest expense decreases over time.