Question
Exercise 5-4 Income effects of inventory methods L.O. A1
Park uses a perpetual inventory system. For specific identification, ending inventory consists of 270 units, where 120 are from the March 30 purchase, 80 are from the March 20 purchase, and 70 are frombeginning inventory.
Complete comparative income statements for the month of March for Park Company for the four inventory methods. Assume expenses are $1,900, and that the applicable income tax rate is 30%.(Round per unit costs to three decimal places. Round your answers to the nearest dollar amounts. Input all amounts as positive values. Omit the "$" sign in your response.)
Park Company reported the following March purchases and sales data for its only product.
Explanation / Answer
The Answers1: Park Company reported the following March purchases and sales data for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 150 units @ $7.00 = $ 1,050 Mar. 10 Sales 90 units @$15 Mar. 20 Purchase 220 units @ $6.00 = 1,320 Mar. 25 Sales 145 units @$15 Mar. 30 Purchase 90 units @ $5.00 = 450 Totals 460 units $ 2,820 235 units Park uses a perpetual inventory system. For specific identification, ending inventory consists of 225 units, where 90 are from the March 30 purchase, 80 are from the March 20 purchase, and 55 are from beginning inventory. PLEASE HELP ME FIND THE COST OF GOODS SOLD IN Specific Identification, Weighted Average, FIFO, AND, LIFO The Answers2: COGS - Specific Identification 140 units @ $6.00 = $840 95 units @ $7.00 = $665 235 units sold; COGS = $1,505 COGS - Weighted Average Mar. 1 Beginning inventory 150 units @ $7.00 = $ 1,050 Mar. 10 Sales 90 units [COGS = 90 units @ $7 = $630