Question

In: Accounting

Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year

Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:

 

      Units Unit Cost
Inventory, December 31, prior year       6,800     $ 8  
For the current year:                  
Purchase, March 5       18,800       6  
Purchase, September 19       9,800       2  
Sale ($30 each)       8,000          
Sale ($32 each)       15,800          
Operating expenses (excluding income tax expense) $ 398,000              
 

 

Required:

1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. (Loss amounts should be indicated with a minus sign.)

 

Solutions

Expert Solution

FIFO IS first in first out

Total sales = 8000+15800=23800    (6800sold from beginning and 15000 from March 5 purchase)

cost of goods sold = 6800*$8+ 17000*6

= 156,400

ending inventory = beginning+ purchase - sold

=54,400+(18800*6+9800*2) - 156,400

=54,400+132,400 - 156,400

= 30,400

 

LIFO last in first out

sales=23800

cost of goods sold=9800*2 + 14000*6     (23800-9800 = 14000sold from march 5 purchase)

                              = 103,600

Ending inventory = 54,400 + 132,400 -  103,600

                             = 83,200

A
B
D
E
F
127
128
FIFO
LIFO
$ 745,600
$ 745,600
129
130
131
S
54,400
S
54,400
132
133
134
Sales revenue (8000*30+15800*32)
Co

 

 


Total sales = 8000+15800=23800    (6800sold from beginning and 15000 from March 5 purchase)

Related Solutions

Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year
Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. 
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December...
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: UnitsUnit CostInventory, December 31, prior year6,300For the current year:Purchase, March 518,30011Purchase, September 199,3007Sale ( $30 each)8,500Sale ( $32 each)15,300Operating expenses (excluding income tax expense)$393,000Required: Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. (Loss amounts should...
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December...
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 6,000 $ 10 For the current year: Purchase, March 5 18,000 8 Purchase, September 19 9,000 4 Sale ($25 each) 8,800 Sale ($33 each) 15,000 Operating expenses (excluding income tax expense) $ 390,000 1. Prepare a separate income statement through pretax...
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December...
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 7,900 $ 11 For the current year: Purchase, March 5 19,900 9 Purchase, September 19 10,900 5 Sale ($27 each) 8,900 Sale ($29 each) 16,900 Operating expenses (excluding income tax expense) $ 409,000 1. Prepare a separate income statement through pretax...
Beck Inc. uses a periodic inventory system. At the end of the annual accounting period, December...
Beck Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 7,000 $ 11 For the current year: Purchase, March 5 19,000 9 Purchase, September 19 10,000 5 Sale ($28 each) 8,000 Sale ($30 each) 16,000 Operating expenses (excluding income tax expense) $ 400,000 1. Prepare a separate income statement through pretax...
Beck Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:
  Beck Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:       Units Unit Cost Inventory, December 31, prior year       6,900     $ 13   For the current year:                   Purchase, March 5       18,900       11   Purchase, September 19...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:                                                  Units  Cost  Inventory, December 31, prior year 2,000 Unit $3For the current year: Purchase, March 21                     5,190  5Purchase, August 1   ...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 1,890 $ 5 For the current year: Purchase, March 21 5,080 7 Purchase, August 1 3,000 8   Inventory, December 31, current year 4,180 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Inv Dec 31 prior year Units 2000 - $5 (unit cost) Puchase march 21 : 5000 - $6 Purchase August 1: 3000 - $8 Inventory December 31 current year 4000: (blank) Ending inventory (FIFO/LIFO/AVG COST) Cost of goods sold (FIFO/LIFO/Avg Cost)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT