The Units of Inventory Available for Sale During the Month

question 37

Essay

The units of inventory available for sale during the month of June were as follows:
There are 59 units of in inventory at June 30. The perpetual inventory system is used.
Calculate the cost of goods sold using (1) FIFO, (2) LIFO and (3) average-cost method.

Develop the ability to calculate and analyze inventory turnover to assess inventory management effectiveness.

Acquire knowledge on how to compute and interpret the times interest earned ratio to evaluate a company's ability to meet its debt obligations.

Understand the significance of the Other Comprehensive Income and its components.

Learn how to perform calculations involving returns on equity and assets to evaluate a company's financial performance.

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Definitions:

Par Value Common Stock

The nominal or face value assigned to common stock shares in the corporation's charter, not necessarily reflecting their market value.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; also known as shareholders' equity.

Retained Earnings Statement

A financial report detailing the modifications in accumulated profits over a certain timeframe.

Prior Period Adjustments

Corrections of errors in financial statements of prior periods or adjustments for omitted transactions.