I accidentally did the chapter 6 serial problem instead of thisworksheet, and it is due today... Please, please, please, help. Iam a good 4.0 student that simply made an idiotic mistake. Thanksin advance for any help.
During January, acompany that uses a perpetual inventory system had beginninginventory, purchases, and sales as follows:
Units Unit cost
Beggininginventory 100 10
Jan 5purchased 40 12
Jan 10sold 60
Jan 15purchased 70 13
Jan 25sold 50
** The selling priceper unit is $20.
1. Using theperpetual inventory system, calculate thetotal cost of goods sold for January and cost of the company'sJanuary 31st inventory for the followingmethods. Show all your work using the formatused in the text!
a) FIFO
b) LIFO
c) Weighted average
d) Prepare journal entries for the events listed in thequestion using the amounts calculated using in (a) FIFOmethod.
2. Using theperiodic inventory system, calculate the costof goods sold for January and cost of the company's January31st inventory for the followingmethods. Show all your work usingthe format provided in the appendix of the chapter in thetext!
a) FIFO
b) LIFO
c) Weighted average
3. A company madethe following purchases during the year:
Jan 10: 15 units @360 each
Mar 25: 25 units@390 each
April 25: 10 units@ 420 each
July 30: 20 units @450 each
Oct 10: 15 units @480 each
On December 31,there were 28 units in ending inventory. These 28 units consistedof 1 from the January 10 purchase, 2 from the March 15 purchase, 5from the April 25 purchase, 15 from the July 30 purchase, and 5from the October 10 purchase. Using perpetual inventory system,calculate the cost goods sold and ending inventory for the yearusing the specific identification method.Show all your work using the format providedin the text! (Note: Answers do not differusing the periodic inventory system)
4. Monitor Companyuses the LIFO method for valuing its ending inventory. Thefollowing financial statement information is available for itsfirst year of operation:
Income Statement
For the year endedDec 31
Sales 50,0000
Cost of goodssold 23,000
Grossprofit 27,000
Expenses 13,000
Income beforetaxes 14,000
Monitor's endinginventory using the LIFO method was $8,200. Monitor's accountantdetermined that, had the company used FIFO, the ending inventorywould have been $8,500.
a) Determine what the income beforetaxes would have been, had Monitor used the FIFO method ofinventory valuation instead of LIFO.
b) Whatwould be the difference in income taxes between LIFO and FIFO,assuming a 30% tax rate?
c) IfMonitor wanted to lower the amount ofincome taxes to be paid, which method would itchoose?
I accidentally did the chapter 6 serial problem instead of thisworksheet, and it is due today... Please, please, please, help. Iam a good 4.0 student that simply made an idiotic mistake. Thanksin advance for any help.
During January, acompany that uses a perpetual inventory system had beginninginventory, purchases, and sales as follows:
Units Unit cost
Beggininginventory 100 10
Jan 5purchased 40 12
Jan 10sold 60
Jan 15purchased 70 13
Jan 25sold 50
** The selling priceper unit is $20.
1. Using theperpetual inventory system, calculate thetotal cost of goods sold for January and cost of the company'sJanuary 31st inventory for the followingmethods. Show all your work using the formatused in the text!
a) FIFO
b) LIFO
c) Weighted average
d) Prepare journal entries for the events listed in thequestion using the amounts calculated using in (a) FIFOmethod.
2. Using theperiodic inventory system, calculate the costof goods sold for January and cost of the company's January31st inventory for the followingmethods. Show all your work usingthe format provided in the appendix of the chapter in thetext!
a) FIFO
b) LIFO
c) Weighted average
3. A company madethe following purchases during the year:
Jan 10: 15 units @360 each
Mar 25: 25 units@390 each
April 25: 10 units@ 420 each
July 30: 20 units @450 each
Oct 10: 15 units @480 each
On December 31,there were 28 units in ending inventory. These 28 units consistedof 1 from the January 10 purchase, 2 from the March 15 purchase, 5from the April 25 purchase, 15 from the July 30 purchase, and 5from the October 10 purchase. Using perpetual inventory system,calculate the cost goods sold and ending inventory for the yearusing the specific identification method.Show all your work using the format providedin the text! (Note: Answers do not differusing the periodic inventory system)
4. Monitor Companyuses the LIFO method for valuing its ending inventory. Thefollowing financial statement information is available for itsfirst year of operation:
Income Statement
For the year endedDec 31
Sales 50,0000
Cost of goodssold 23,000
Grossprofit 27,000
Expenses 13,000
Income beforetaxes 14,000
Monitor's endinginventory using the LIFO method was $8,200. Monitor's accountantdetermined that, had the company used FIFO, the ending inventorywould have been $8,500.
a) Determine what the income beforetaxes would have been, had Monitor used the FIFO method ofinventory valuation instead of LIFO.
b) Whatwould be the difference in income taxes between LIFO and FIFO,assuming a 30% tax rate?
c) IfMonitor wanted to lower the amount ofincome taxes to be paid, which method would itchoose?
