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25th Century Electronic Center began December with 60 units of merchandise inventory that cost $68 each. During December, the store made the following purchases (Click the icon to view the purchases.) 25th Century uses the periodic inventory system, and the physical count at December 31 indicates that 90 units of merchandise inventory are on hand. Read the requirements. Requirements 1. Determine the ending merchandise inventory and cost of goods sold amounts for the December financial statements using the FIFO, LIFO, and weighted average inventory costing methods. Sales revenue for December totaled $26,000. Compute 25th Century's gross profit for December using each method. Which method will result in the lowest income taxes for 25th Century? Why? Which method will result in the highest net income for 25th Century? Why? 2. 3. X Data table Dec. 3 Dec. 12 Dec. 18 Print 40 units @ $72 each 50 units @ $90 each 30 units @ $92 each Done X

25th Century Electronic Center began December with 60 units of merchandise inventory that cost $68 each. During December, the store made the following purchases (Click the icon to view the purchases.) 25th Century uses the periodic inventory system, and the physical count at December 31 indicates that 90 units of merchandise inventory are on hand. Read the requirements. Requirements 1. Determine the ending merchandise inventory and cost of goods sold amounts for the December financial statements using the FIFO, LIFO, and weighted average inventory costing methods. Sales revenue for December totaled $26,000. Compute 25th Century's gross profit for December using each method. Which method will result in the lowest income taxes for 25th Century? Why? Which method will result in the highest net income for 25th Century? Why? 2. 3. X Data table Dec. 3 Dec. 12 Dec. 18 Print 40 units @ $72 each 50 units @ $90 each 30 units @ $92 each Done X

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter14: Adjustments And The Work Sheet For A Merchandising Business
Section: Chapter Questions
Problem 4SEA: WORK SHEET EXTENSIONS FOR MERCHANDISE INVENTORY ADJUSTMENTS: PERIODIC INVENTORY SYSTEM The following...
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25th Century Electronic Center began December with 60 units of merchandise inventory that cost $68 each. During December, the store made the following purchases (Click the icon to view the purchases.) 25th Century uses the periodic inventory system, and the physical count at December 31 indicates that 90 units of merchandise inventory are on hand. Read the requirements. Requirements Determine the ending merchandise inventory and cost of goods sold amounts for the December financial statements using the FIFO, LIFO, and weighted-average inventory costing methods. 2. Sales revenue for December totaled $26,000. Compute 25th Century's gross profit for December using each method. Which method will result in the lowest income taxes for 25th Century? Why? Which method will result in the highest net income for 25th Century? Why? 1. 3. Data table Dec. 3 Dec. 12 Dec. 18 Print 40 units @ $72 each 50 units @ $90 each 30 units @ $92 each Done X d-a
Transcribed Image Text:25th Century Electronic Center began December with 60 units of merchandise inventory that cost $68 each. During December, the store made the following purchases (Click the icon to view the purchases.) 25th Century uses the periodic inventory system, and the physical count at December 31 indicates that 90 units of merchandise inventory are on hand. Read the requirements. Requirements Determine the ending merchandise inventory and cost of goods sold amounts for the December financial statements using the FIFO, LIFO, and weighted-average inventory costing methods. 2. Sales revenue for December totaled $26,000. Compute 25th Century's gross profit for December using each method. Which method will result in the lowest income taxes for 25th Century? Why? Which method will result in the highest net income for 25th Century? Why? 1. 3. Data table Dec. 3 Dec. 12 Dec. 18 Print 40 units @ $72 each 50 units @ $90 each 30 units @ $92 each Done X d-a
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