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Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068 Exercise 7
Step-by-step solution
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Step 1 of 2
a. | Use the "Cost of Goods Sold" model: |
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| Beginning inventory, Finished Goods……………………….. | 3,850 |
| Add: Production……………………………………………... | 41,850 |
| Goods available for sale……………………………………... | 45,700 |
| Less: Ending inventory, Finished Goods……………………. | (5,400) |
| Units sold……………………………………………………. | 40,300 |
| Steps: |
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| (1) Units sold based on sales forecast. |
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| (2) Ending inventory is given. |
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| (3) Goods available for sale = units sold (based on sales forecast) + ending inventory. |
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| (4) Beginning inventory is given. |
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| (5) Production = goods available - beginning inventory. |
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Step 2 of 2
Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
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