A. Compute the missing amounts in the income statement under three different inventory costing methods: (Ignore income taxes.) Sales revenue (3,000 units) Cost of goods sold: Beginning inventory (1,000 units @ $10 per unit) Purchases (4,000 units @ $12 per unit) Goods available for sale Ending inventory (2,000 units) Cost of goods sold Gross profit Operating expenses Net operating income (pretax) FIFO $90,000 10,000 (1) (2) (3) (4) (5) 20,000 (6) LIFO $90,000 10,000 (7) (8) (9) (10) (11) 20,000 (12) Average Cost $90,000 10,000 (13) (14) (15) (16) (17) 20,000 (18)

A. Compute the missing amounts in the income statement under three different inventory costing methods: (Ignore income taxes.) Sales revenue (3,000 units) Cost of goods sold: Beginning inventory (1,000 units @ $10 per unit) Purchases (4,000 units @ $12 per unit) Goods available for sale Ending inventory (2,000 units) Cost of goods sold Gross profit Operating expenses Net operating income (pretax) FIFO $90,000 10,000 (1) (2) (3) (4) (5) 20,000 (6) LIFO $90,000 10,000 (7) (8) (9) (10) (11) 20,000 (12) Average Cost $90,000 10,000 (13) (14) (15) (16) (17) 20,000 (18)

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

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