Use the following information to complete this exercise: sales, 850 units for S2

Question

Use the following information to complete this exercise: sales, 850 units for S29,400, beginning inventory 600 units; purchases, 700 units, ending inventory, 450 units, and operating expenses, $6,800 Required 1. Complete the table for each situation. In Situations A and B (costs rising), assume the following: beginning inventory, 600 units at $14 = $8,400; purchases, 700 units at $16 = $11.200. In Situations C and D (costs falling), assume the opposite; that is, beginning inventory, 600 units at $16 $9,600 purchases. 700 units at $14 = $9,800. Use periodic inventory procedures Costs Rising Costs Falling Situation A Situation B Situation C Situation D FIFO LIFO FIFO LIFO Sales Revenue Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (30%) Net Income S 29,400 $29,400 S 29,400 29,400 $ 8,400 11,200 19,600 7,200 12.400 17,000 6,800 10,200 3,060 $ 7,140 6,800 6,800 6,800

Explanation / Answer

SITUATION A FIFO SITUATION B LIFO SITUATION C FIFO SITUATION D LIFO Sales revenue 29400 29400 29400 29400 Beginning Inventory 8400 8400 9600 9600 Purrchasses 11200 11200 9800 9800 Goods available for sales 19600 19600 19400 19400 Ending Inventory 7200 6300 6300 7200 Cost of Goods sold 12400 13300 13100 12200 Gross Profit 17000 16100 16300 17200 Operating expense 6800 6800 6800 6800 Income from Operations 10200 9300 9500 10400 Income tax expense @30% 3060 2790 2850 3120 Net income 7140 6510 6650 7280

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---