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Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Units 4,000 Unit Cost $ 28 Transactions a. Inventory, Beginning For the year: b. Purchase, March 5 C. Purchase, September 19 d. Sale, April is (sold for $73 per unit) e. Sale, October 31 (sold for $76 per unit) f. Operating expenses (excluding income tax expense), $612,000 10,000 6,000 4,500 9,000 29 31 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 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes?

Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Units 4,000 Unit Cost $ 28 Transactions a. Inventory, Beginning For the year: b. Purchase, March 5 C. Purchase, September 19 d. Sale, April is (sold for $73 per unit) e. Sale, October 31 (sold for $76 per unit) f. Operating expenses (excluding income tax expense), $612,000 10,000 6,000 4,500 9,000 29 31 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 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes?

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Inventories
Section: Chapter Questions
Problem 6.5BE: Periodic inventory using FIFO, UFO, and weighted average cost methods The units of an item available...
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Need requirement only 4 and 6 Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Units 4,000 Unit Cost $ 28 Transactions a. Inventory, Beginning For the year: b. Purchase, March 5 C. Purchase, September 19 d. Sale, April 15 (sold for $73 per unit) e. Sale, October 31 (sold for $76 per unit) f. Operating expenses (excluding incone tax expense), $612,000 10,000 6,000 4,500 9,000 29 31 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. 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes?
Transcribed Image Text:Need requirement only 4 and 6 Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Units 4,000 Unit Cost $ 28 Transactions a. Inventory, Beginning For the year: b. Purchase, March 5 C. Purchase, September 19 d. Sale, April 15 (sold for $73 per unit) e. Sale, October 31 (sold for $76 per unit) f. Operating expenses (excluding incone tax expense), $612,000 10,000 6,000 4,500 9,000 29 31 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. 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes?
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