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Compute the cost of goods sold, ending inventory, gross profit, income tax expense and net income assuming: FIFO cost flow LIFO cost flow Weighted-average cost flow

Compute the cost of goods sold, ending inventory, gross profit, income tax expense and net income assuming: FIFO cost flow LIFO cost flow Weighted-average cost flow

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The accounting records of Allen Insulation, Inc. reflected the following balances as of January 1, 20x0:

Beginning Inventory: $190 units @ $120

The following transactions occurred in 20X0:

January 30th Purchase (cash): 230 units @ $124

March 12th Purchase (cash): 180 units @$128

June 3rd Sale (cash): 350 units @$320

Paid $24,000 of operating expenses.

Paid cash for income tax at the rate of 40 percent of income before tax.


Compute the cost of goods sold, ending inventory, gross profit, income tax expense and net income assuming:

FIFO cost flow

LIFO cost flow

Weighted-average cost flow

RAW DATA:

 
 
Beginning Inventory 30-Jan purchase 12-Mar purchase Total Sales Ending Inventory (In Units) Tax Rate 40% Units Units Per unit cost Total Cost 190 S 230 S 180 S 120.00 S 124.00 S 128.00 $ 22,800.00 28,520.00 23,040.00 Per Unit Price Total Sales 350 S 320.00 S 112,000.00 FIFO Ending Inventory Goods Available for Sale Deduct ending Inventory Cost of Goods Sold Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income before tax Income Tax Net Income Tax Rate Units Per unit cost Total Cost Total Cost $24,000.00 LIFO Ending Inventory Goods Available for Sale Deduct ending Inventory Cost of Goods Sold Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income before tax Income Tax Net Income Tax Rate Units Per unit cost Total Cost Total Cost $24,000.00
Transcribed Image Text:Beginning Inventory 30-Jan purchase 12-Mar purchase Total Sales Ending Inventory (In Units) Tax Rate 40% Units Units Per unit cost Total Cost 190 S 230 S 180 S 120.00 S 124.00 S 128.00 $ 22,800.00 28,520.00 23,040.00 Per Unit Price Total Sales 350 S 320.00 S 112,000.00 FIFO Ending Inventory Goods Available for Sale Deduct ending Inventory Cost of Goods Sold Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income before tax Income Tax Net Income Tax Rate Units Per unit cost Total Cost Total Cost $24,000.00 LIFO Ending Inventory Goods Available for Sale Deduct ending Inventory Cost of Goods Sold Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income before tax Income Tax Net Income Tax Rate Units Per unit cost Total Cost Total Cost $24,000.00
Weighted Average Ending Inventory Goods Available for Sale Deduct ending Inventory Cost of Goods Sold Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income before tax Income Tax Net Income Tax Rate Units Average Cost Total Cost Total Cost $24,000.00 Summary Sales (S) Cost of Goods Sold (S) Gross Profit (S) Net Income (S) FIFO LIFO Weighted Average
Transcribed Image Text:Weighted Average Ending Inventory Goods Available for Sale Deduct ending Inventory Cost of Goods Sold Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income before tax Income Tax Net Income Tax Rate Units Average Cost Total Cost Total Cost $24,000.00 Summary Sales (S) Cost of Goods Sold (S) Gross Profit (S) Net Income (S) FIFO LIFO Weighted Average
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