Explain the step by step instructions given the following data for the items 1, 2, 3, 4 and 5 below. Units Price Beginning Inventory 200 $1.20 First Purchase 400 $1.30 Second Purchase 250 $1.40 Sales 550 $2.00 Assuming a FIFO cost flow, the amount of cost of goods sold reported on the income statement would be what? Assuming a LIFO cost flow, the amount of ending inventory reported on the balance sheet would be what? Assuming a weighted average cost flow, the amount of ending inventory reported on the balance sheet would be (round the final answer to the nearest dollar) would be what? In a period of rising prices, which inventory cost flow method results in the lowest balance sheet figure for inventory? In a period of rising prices, which inventory cost flow method results in the lowest income tax liability, all other things being equal?
Explain the step by step instructions given the following data for the items 1, 2, 3, 4 and 5 below. Units Price Beginning Inventory 200 $1.20 First Purchase 400 $1.30 Second Purchase 250 $1.40 Sales 550 $2.00 Assuming a FIFO cost flow, the amount of cost of goods sold reported on the income statement would be what? Assuming a LIFO cost flow, the amount of ending inventory reported on the balance sheet would be what? Assuming a weighted average cost flow, the amount of ending inventory reported on the balance sheet would be (round the final answer to the nearest dollar) would be what? In a period of rising prices, which inventory cost flow method results in the lowest balance sheet figure for inventory? In a period of rising prices, which inventory cost flow method results in the lowest income tax liability, all other things being equal?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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Explain the step by step instructions given the following data for the items 1, 2, 3, 4 and 5 below.
|
Units |
Price |
Beginning Inventory |
200 |
$1.20 |
First Purchase |
400 |
$1.30 |
Second Purchase |
250 |
$1.40 |
Sales |
550 |
$2.00 |
- Assuming a FIFO cost flow, the amount of cost of goods sold reported on the income statement would be what?
- Assuming a LIFO cost flow, the amount of ending inventory reported on the balance sheet would be what?
- Assuming a weighted average cost flow, the amount of ending inventory reported on the balance sheet would be (round the final answer to the nearest dollar) would be what?
- In a period of rising prices, which inventory cost flow method results in the lowest balance sheet figure for inventory?
- In a period of rising prices, which inventory cost flow method results in the lowest income tax liability, all other things being equal?
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