Question

On January 1st 2018, the Antman Company was founded when Ms. Wasp purchased 100 units of inventory at $25 each

On February 1st Antman sold 80 units of inventory at $40 each

On March 1st Antman purchased 200 units of inventory at $27 each

On July 1st Antman purchased 300 units of inventory at $30 each

On August 1st Antman sold 400 units of inventory at $44 each

On October 1st Antman purchased 300 units of inventory at $31 each

On December 1st Antman sold 200 units of inventory at $50 each

On December 28th Antman purchased 100 units of inventory at $29 each

ALL PURCHASES AND SALES WERE MADE ON CREDIT

REQUIRED: MAKE ALL THE JOURNAL ENTRIES ANTMAN MAKES CONNECTED WITH INVENTORY

UNDER PERPETUAL LIFO METHOD…DON'T FORGET THE ORIGINAL PURCHASE OF INVENTORY ON JANUARY 1

WHAT IS ENDING INVENTORY AND COST OF GOODS SOLD FOR 2018?

BONUS 2 POINTS (NO PARTIAL CREDIT) IF TAXES ARE 30% HOW MUCH MONEY DID ANTMAN SAVE BY

USING LIFO PERPETUAL INSTEAD OF FIFO PERPETUAL?

Answer 1

Date	accounts title	Dr	Cr
jan 1 2018	Inventory	$2,500
	Accounts Payable		$2,500
1-Feb	Accounts Receivable	$3,200
	Sales (80*40)		$3,200
	Cost of good sold	$2,000
	Inventory (80*25)		$2,000
1-Mar	Inventory (200*27)	$5,400
	Accounts Payable		$5,400
1-Jul	Inventory (300*30)	$9,000
	Accounts Payable		$9,000
1-Aug	Accounts Receivable	$17,600
	Sales (400*44)		$17,600
	Cost of good sold	11700
	Inventory (100*27)+(300*30)		$11,700
1-Oct	Inventory (300*31)	$9,300
	Accounts Payable		$9,300
1-Dec	Accounts Receivable	$10,000
	Sales (200*50)		$10,000
	Cost of good sold	6200
	Inventory (200*31)		$6,200
28-Dec	Inventory (100*29)	$2,900
	Accounts Payable		$2,900
	As per LIFO
	ending Inventory	$9,200
	(2500-2000+5400-10400+9300-6200+2900)
	Cost of good sold	$19,900
	2000+6200+10400
	As per FIFO COGS	19380
	(80*25)+((20*25)+(200*27)+(180*30))+((120*30)+(80*31))
As per FIFO
Gross profit	Sales-COGS
	30800-19380	11420
	Income tax 30%	3426
As per LIFO
Gross profit	Sales-COGS
	30800-19900	$10,900
	Income tax 30%	3270
Sav ing in income tax 3426-3270		156