The following information pertains to the inventory of Parvin Company during Year 2. January 1 April 1 October 1 450 units@ $32 2,250 units @ $37 650 units@ $40 Beginning Inventory Purchased Purchased During Year 2, Parvin sold 3,000 units of inventory at $95 per unit and incurred $47,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $87,000, inventory of $14,400, common stock of $62,000, and retained earnings of $39,400. Required a. Record the above transactions in general journal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of journal entries and T-accounts for each method. Complete this question by entering your answers in the tabs below. FIFO General Journal FIFO T accounts LIFO General Journal LIFO T accounts

The following information pertains to the inventory of Parvin Company during Year 2. January 1 April 1 October 1 450 units@ $32 2,250 units @ $37 650 units@ $40 Beginning Inventory Purchased Purchased During Year 2, Parvin sold 3,000 units of inventory at $95 per unit and incurred $47,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $87,000, inventory of $14,400, common stock of $62,000, and retained earnings of $39,400. Required a. Record the above transactions in general journal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of journal entries and T-accounts for each method. Complete this question by entering your answers in the tabs below. FIFO General Journal FIFO T accounts LIFO General Journal LIFO T accounts

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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Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Zoola, Inc. provided the following information regarding its inventory for the current year, its second yearof operations.Transaction Units Unit CostBeginning inventory1/1 3,000 17.00Purchases, January 23 4,500 16.00Purchases, February 14 1,200 16.50Purchases, March 17 2,300 17.00 Units Sold-April 13 at 20 9,600Purchases, May 5 5,600 15.00Purchases, July 4 3,200 16.00 Unit Sold-October 31 at 19 8,700Purchases, November 22 1,400 15.00Instruction :1.1 Compute Zoola’s ending inventory and cost of goods sold under the following cost-flow assumptions assuming a perpetual inventory…
Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded at its total cost of $18,075. Information about its inventory items follows: Product Line Quantity on Hand Unit Cost When Acquired (FIFO) Value at Year-End Air Flow 65 $ 60 $ 64 Blister Buster 45 80 72 Coolonite 70 100 98 Dudesly 65 55 59 Required: Compute the LCM/NRV write down per unit and in total for each item in the table. Also compute the total overall write-down for all items. How will the write-down of inventory to lower of cost or market/net realizable value affect the company's expenses reported for the year ended December 31? Compute the amount that should be reported for the inventory on December 31, after the LCM/NRV rule has been applied to each item Compute the LCM /NRV write-down per unit and in total for each item in the table. Also compute the total overall write - down for all items. Product Line Quantity on Hand Write-down per item Total Write-down…
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Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded at its total cost of $10,250. Information about its inventory items follows: Unit Cost When Acquired (FIFO) Quantity Product Line on Hand Value at Year-End Air Flow 25 $ 90 $ 92 Blister 15 80 76 Buster Coolonite 70 Dudesly 60 20 20 13 90 96 Required: 1. Compute the LCM/NRV write-down per unit and in total for each item in the table. Also compute the total overall write-down for all items. 2. How will the write-down of inventory to lower of cost or market/net realizable value affect the company's expenses reported for the year ended December 31? 3. Compute the amount that should be reported for the inventory on December 31, after the LCM/NRV rule has been applied to each item. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Compute the LCM/NRV write-down per unit and in total for each item in the table. Also compute…
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