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On December 1, 2020, Waterway Company had the account balances shown below Debit $5,000 Accumulated Depreciation-Equipment Credit Cash Accounts Receivable Inventory Equipment 4,700 Accounts Payable 2,400* Owners Capital 25,000 $1,100 3,200 32,800 $37,100 $37,100 (4,000 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.70 per unit 5 Sold 4,300 units of inventory on account for $0.86 per unit. (Waterway sold 4,000 of the $0.60 units and 300 of the $0.70.) 7 Granted the December 5 customer $159 credit for 200 units of inventory returned costing $106. These units were returned to inventory 17 Purchased 2,300 units of inventory for cash at $0.76 each 22 Sold 3,200 units of inventory on account for $0.91 per unit. (Waterway sold 3,200 of the $0.70 units.) Adjustment data: 1. Accrued salaries payable $600 2. Depreciation $200 per monthX Your answer is incorrect. Try again. Compute ending inventory and cost of goods sold under FIFO, assuming Waterway Company uses the periodic inventory system. Ending Inventory Cost of Goods Sold Compute ending inventory and cost of goods sold under LIFO, assuming Waterway Company uses the periodic inventory system. Ending Inventory Cost of Goods Sold i.

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Answer are highlighted in yellow: Solution: FIFO Goods avaiable for sale Cost of Goods Sold Ending Inventory Date Quantity Unit CostTotal Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Beg Dec.3 Dec.17 4000 $ 0.60 2,400 4000 $ 0.70$ 2,800 2300 000 0.60 2,400 3300 0.70$ 2,310 700$ 0.70 $ 490 1,748 0.76 1,748 2300 0.76 Total 10,300 $6,948 7300 $ 4,710 3000 $ 2,238 LIFO Goods avaiable for sale Cost of Goods Sold Ending Inventory Date Quantity Unit CostTotal Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 000 0.602,400 4000 $ 0.70$ 2,800 2300 1000 $ 0.60$ 600 4000 $ 0.70$ 2,800 2300 3000 0.60 1,800 Beg Dec.3 Dec.17 0.76 1,748 0.76 1,748 Total10,300 6,948 7300 $ 5,148 3000 $1,800

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