Transactions a. Inventory, Beginning For the year: b. Purchase, March 5 c. Purchase, September 19 d. Sale, April 15 (sold for $71 per unit) e. Sale, October 31 (sold for $74 per unit) f. Operating expenses (excluding income tax expense), $594,000 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. Complete this question by entering your answers in the tabs below. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO and (b) LIFO. 4. Prepare an income statement that shows the FIFO method and LIFO method. 5. Which inventory costing method minimizes income taxes? Required 1 Required 2 Required 3 Required 4. Required 5 Prepare an income statement that shows the FIFO method and LIFO method. SCORESBY INCORPORATED Income Statement For the Year Ended December 31 FIFO Units 4,000 LIFO 10,000 6,000 4,100 9,000 Unit Cost $ 26 27 29
Transactions a. Inventory, Beginning For the year: b. Purchase, March 5 c. Purchase, September 19 d. Sale, April 15 (sold for $71 per unit) e. Sale, October 31 (sold for $74 per unit) f. Operating expenses (excluding income tax expense), $594,000 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. Complete this question by entering your answers in the tabs below. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO and (b) LIFO. 4. Prepare an income statement that shows the FIFO method and LIFO method. 5. Which inventory costing method minimizes income taxes? Required 1 Required 2 Required 3 Required 4. Required 5 Prepare an income statement that shows the FIFO method and LIFO method. SCORESBY INCORPORATED Income Statement For the Year Ended December 31 FIFO Units 4,000 LIFO 10,000 6,000 4,100 9,000 Unit Cost $ 26 27 29
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
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