Question
In: Accounting
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 | 6,300 | |
| For the current year: | ||
| Purchase, March 5 | 18,300 | 11 |
| Purchase, September 19 | 9,300 | 7 |
| Sale ( $30 each) | 8,500 | |
| Sale ( $32 each) | 15,300 | |
| Operating expenses (excluding income tax expense) | $393,000 |
Required:
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
Income statement
| Case A | Case B | |||
| FIFO | LIFO | |||
| Sales (8500*30+15300*32) | 744600 | 744600 | ||
| Cost of goods sold | ||||
| Beginning inventory (6300*13) | 81900 | 81900 | ||
| Purchase | 266400 | 266400 | ||
| Cost of goods available for sale | 348300 | 348300 | ||
| Less: Ending inventory | 73900 | 123700 | ||
| Cost of goods sold | 274400 | 224600 | ||
| Gross profit | 470200 | 520000 | ||
| Operating expense | 393000 | 393000 | ||
| Pretax income (loss) | 77200 | 127000 | ||
ekkarill92 answered 3 years agoRelated Solutions
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...
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)
Emily Company uses a periodic inventory system. At the end of the annual accounting period, December...
Emily 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
2:
Units
Unit Cost
Inventory, December 31, prior year
2,890
$
12
For the current year:
Purchase, April 11
8,860
13
Purchase, June 1
7,930
18
Sales ($55 each)
10,860
Operating expenses (excluding income tax expense)
$
191,500
2. Compute the difference between the pretax
income and the ending inventory...
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
2,000
$
5
For the current year:
Purchase, March 21
5,000
6
Purchase, August 1
3,000
8
Inventory, December 31, current year
4,000
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:
Units
Unit Cost
Inventory, December 31, prior year
1,960
$
5
For the current year:
Purchase, March 21
5,020
7
Purchase, August 1
2,900
8
Inventory, December 31, current year
4,080
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:
Units
Unit Cost
Inventory, December 31, prior year
1,940
$
4
For the current year:
Purchase, March 21
5,110
6
Purchase, August 1
2,860
7
Inventory, December 31, current year
4,160
Required:
Compute ending inventory and cost of goods sold for the current
year under FIFO, LIFO, and average...
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