Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory cos at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following infe the end of the annual accounting period, December 31. Transactions Units Unit Cost a. Inventory, Beginning For the year: b. Purchase, April 11 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) e. Sale, July 3 (sold for $40 per unit) 300 $ 12 900 10 800 13 300 600 f. Operating expenses (excluding income tax expense), $19,500 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost.

Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory cos at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following infe the end of the annual accounting period, December 31. Transactions Units Unit Cost a. Inventory, Beginning For the year: b. Purchase, April 11 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) e. Sale, July 3 (sold for $40 per unit) 300 $ 12 900 10 800 13 300 600 f. Operating expenses (excluding income tax expense), $19,500 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost.

Name: E7-8 (Static) Analyzing and Interpreting the Financial Statement Effe
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Description: E7-8 (Static) Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, andWeighted Average Cost [LO 7-3]Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory cos

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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