# Example Exercise 1 - PowerPoint PPT Presentation

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Example Exercise 1. Inventory Cost Flow Assumptions. Example Exercise 1. Inventory Cost Flow Assumptions - FIFO. Example Exercise 1. Inventory Cost Flow Assumptions - LIFO. Example Exercise 1. Inventory Cost Flow Assumptions–Average Cost. 2. Example Exercise 1. 1. Sales\$70

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Example Exercise 1

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Example Exercise 1

Inventory Cost Flow Assumptions

Example Exercise 1

Inventory Cost Flow Assumptions - FIFO

Example Exercise 1

Inventory Cost Flow Assumptions - LIFO

Example Exercise 1

Inventory Cost Flow Assumptions–Average Cost

2

Example Exercise 1

1

Sales\$70

Less cost of merchandise sold(45)

Gross Profit\$25

Ending Inventory (\$48 + \$51)\$99

(a) FIFO

2

Example Exercise 1

1

Sales\$70

Less: cost of merchandise sold(51)

Gross Profit\$19

Ending Inventory (\$45 + \$48)\$93

(b) LIFO

2

Example Exercise 1

1

Sales\$70

Less: cost of merchandise sold(48)

Gross Profit\$22

Ending Inventory (\$48 x 2)\$96

(c) Average Cost

Example Exercise 1

1

1

 For Practice: PE 1A, PE 1B