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Question: You have the following information for Van Gogh Inc. for the month ended October 31, 2017. Van Gogh uses a periodic method for inventory.
Instructions: (a) Calculate (i) ending inventory,
(ii) cost of goods sold,
(iii) gross profit, and
(iv) gross profit rate under each of the following methods.
(1) LIFO.
(2) FIFO.
(3) Average-cost. (Round cost per unit to three decimal places.)
(b) Compare results for the three cost flow assumptions.
Classify the following costs as variable (V), fixed (F), or semivariable (S) in terms of their behavior with respect to volume or level of activity.
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Disclosure usually is not required for: A) contingent gains that are probable and can be reasonably estimated. B) contingent losses that are reasonable possible and cannot be reasonably estimated.
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