Check my w Courtney Company uses a periodic inventory system. The following data
ID: 2330529 • Letter: C
Question
Check my w Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,700 units at $35; purchases, 3,300 units at $40; operating expenses (excluding income taxes), $95,000, ending inventory per physical count at December 31, 1100 units; sales price per unit, $85, and average income tax rate,30% 58 Required 1. Prepare income statements under the FIFO, LIFO, and weighted average costing methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) int Inventory Costing Methood Print Weighted Average Income Statement Units FIFO LIFO Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income Weighted verage Units FIFO LIFO Mc GrawExplanation / Answer
Answers
FIFO
LIFO
Weighted Average
Beginning Units
1700 units at $ 35
1700 units at $ 35
1700 units at $ 35
Purchases
3300 units at $40
3300 units at $40
3300 units at $40
Ending Units:
1100 units
1100 units
1100 units
From Beginning Units--
1100 units at $ 35
From purchased units--
1100 units at $ 40
From Average [Goods available for sale/5000 units = $ 38.3]
1100 units at $ 38.3
Income Statement
Units
FIFO
LIFO
Weighted Avergae
Sales revenue
3,900
$ 331,500.00
$ 331,500.00
$ 331,500.00
Cost of Goods Sold
3,900
$ 147,500.00
$ 153,000.00
$ 149,370.00
Gross Profits
$ 184,000.00
$ 178,500.00
$ 182,130.00
Operating Expenses
$ 95,000.00
$ 95,000.00
$ 95,000.00
Income from Operations
$ 89,000.00
$ 83,500.00
$ 87,130.00
Income Tax Expense
$ 26,700.00
$ 25,050.00
$ 26,139.00
Net Income
$ 62,300.00
$ 58,450.00
$ 60,991.00
Units
FIFO
LIFO
Weighted Avergae
Cost of Goods Sold Equation:
Beginning Inventory
1,700
$ 59,500.00
$ 59,500.00
$ 59,500.00
Purchases
3,300
$ 132,000.00
$ 132,000.00
$ 132,000.00
Goods available for Sale
5,000
$ 191,500.00
$ 191,500.00
$ 191,500.00
Ending Inventory
1,100
$ 44,000.00
$ 38,500.00
$ 42,130.00
Cost of Goods Sold
3,900
$ 147,500.00
$ 153,000.00
$ 149,370.00
Income Statement
Units
FIFO
LIFO
Weighted Avergae
Sales revenue
3900
=3900*85
=3900*85
=3900*85
Cost of Goods Sold
3900
CALCULATED BELOW
Gross Profits
$ 184,000.00
$ 178,500.00
$ 182,130.00
Operating Expenses
$ 95,000.00
$ 95,000.00
$ 95,000.00
Income from Operations
$ 89,000.00
$ 83,500.00
$ 87,130.00
Income Tax Expense
$ 26,700.00
$ 25,050.00
$ 26,139.00
Net Income
$ 62,300.00
$ 58,450.00
$ 60,991.00
=+C2265
=+D2265
=+E2265
=+F2265
Cost of Goods Sold Equation:
Beginning Inventory
1700
=1700*35
=1700*35
59500
Purchases
3300
=3300*40
=3300*40
132000
Goods available for Sale (A)
Total
Total
Total
Total
Ending Inventory (B)
1100
=1100*40
=1100*35
=1100*38.3
Cost of Goods Sold (A – B)
(A – B)
(A – B)
(A – B)
(A – B)
FIFO
LIFO
Weighted Average
Beginning Units
1700 units at $ 35
1700 units at $ 35
1700 units at $ 35
Purchases
3300 units at $40
3300 units at $40
3300 units at $40
Ending Units:
1100 units
1100 units
1100 units
From Beginning Units--
1100 units at $ 35
From purchased units--
1100 units at $ 40
From Average [Goods available for sale/5000 units = $ 38.3]
1100 units at $ 38.3