Question
In: Accounting
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 | 9,900 | 7 | |||||||
| Sale ($29 each) | 7,900 | ||||||||
| Sale ($31 each) | 15,900 | ||||||||
| Operating expenses (excluding income tax expense) | $ | 399,000 | |||||||
2.
Required information
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.)
3.
value:
4.28 points
Required information
2. Compute the difference between the pretax income and the ending inventory amounts for the two cases. (Negative amount should be indicated with a minus sign.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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:
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. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)
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...
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...
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...
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...
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