Question 2 of 3>9.9/ 33InventoriesPurchases and SalesBeginning (4,000 units)$8.000Total net sales (182,000 units)$755,300Ending (12,000 units)Total cost of goods purchased (190,000 units)466,000Purchases were made quarterly as follows.QuarterUnitsUnit CostTotal Cost150,000$2.20$110,000240,0002.3594,00040,0002.50100,000460,0002.70162.000190.000$466,000Operating expenses were $120,000, and the company's income tax rate is 40%.(a)Your AnswerCorrect AnswerYour answer is partially correct.Prepare comparative conderised income staternents for 2022 under FIFO and LIFO.CRANE INC.Condensed Income StatementsFor the Year Fnderd December 31, 2022FIFOLIFOSales Revenues755300755300Cost of Goods SoldBeginning Inventorya000 i8000 iCost of Goods Purchased466000466000Cast of Goods Avwailahıle for Sale v474000474000 iEnding inventoryCost of Goods SoldGross Profit / ILos)Operating ExpensesIncome before income TaxesIncne Tax ExpenseNet Income/(Loss)

FIFO Method assumed Inventory purchased at First shall be used first to make sales ; hence item in…

CRANE INC. Condensed Income Statements For the Year Fnded Decenber 31, 2022 FIFO LIFO Sales Revenues 755300 755300 Cost of Goods Sold Beginning Inventory 8000 Cost of Goods Purchased 466000 466000 Cast of Goods Available for Sale v 474000 474000 i Ending inventory Cost of Goods Sold

CRANE INC. Condensed Income Statements For the Year Fnded Decenber 31, 2022 FIFO LIFO Sales Revenues 755300 755300 Cost of Goods Sold Beginning Inventory 8000 Cost of Goods Purchased 466000 466000 Cast of Goods Available for Sale v 474000 474000 i Ending inventory Cost of Goods Sold

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 6.3TIF: Communication Golden Eagle Company began operations on April 1 by selling a single product. Data on...

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Appendix Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1,20Y7 380,000 Inventory, April 30,20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30. 20Y8, using the periodic inventory system. b. Determine the gross profit to be-reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventors-system?
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Communication Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Date Units Purchased Unit Cost Total Cost April 6 31,000 36.60 1,134,600 May 18 33,000 39.00 1,287,000 June 6 40,000 39.60 1,584,000 July 10 40,000 42.00 1,680,000 August 10 27,200 42.75 1,162,800 October 25 12,800 43.50 556,800 November 4 8,000 44.85 358,800 December 10 8,000 48.00 384,000 200,000 8,148,000 Sales: April 16,000 units May 16,000 June 20,000 July 24,000 August 28,000 September 28,000 October 18,000 November 10,000 December 8,000 Total Units 168,000 Total sales 10,000,000 The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Dollar-Value LIFO A company adopted the LIFO method when its inventory was 1,800. One year later its ending inventory was 2,100, and costs had increased 5% during the year. Required: What is the ending inventory using dollar-value LIFO? Round to the nearest dollar.
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