Exercise Specific identification cost flow assumption LO e cel
CHECK FIGURE: COGS $
Use the information in Exercise Assume that Car Armour specifically sold the following units:
tableJan:units from beginning inventoryMar: units from beginning inventory, and,Oct: units from the July purchase, and,units from the October purchase
Calculate cost to be assigned to ending inventory and cost of goods sold.
Exercise Income statement effects of alternative cost flow assumptions LO
Use the data in Exercises and to construct comparative income statements for Car Armour yearend December similar to those shown in Exhibit in the chapter. Assume that operating expenses are $
Which method results in the highest profit?
If costs were rising instead of falling, which method would result in the highest profit?
