Question
In: Accounting
Following is partial information for the income statement of Audio Solutions Company under three different inventory...
Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system:
Required:
1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. (Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar amount.)
| FIFO | LIFO | AVF COST | |
| BEGINING INVENTORY (395 UNITS @ $27) | $10665 | $10665 | $10665 |
| PURCHASES (469UNITS @ $ 35) | 16415 | 16415 | 16415 |
2. Prepare an income statement through pretax income for each method.
Sales, 328 units; unit sales price, $53; Expenses, $1,640
3. Rank the three methods in order of income taxes paid (favorable cash flow).
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Required information Problem 6-3B Record transactions and prepare a partial income statement using a perpetual inventory...
Required information
Problem 6-3B Record transactions and prepare a partial income
statement using a perpetual inventory system (LO6-2, 6-5)
[The following information applies to the questions
displayed below.]
At the beginning of June, Circuit Country has a balance in
inventory of $2,700. The following transactions occur during the
month of June.
June
2
Purchase radios on account from Radio World for $2,400, terms
1/15, n/45.
June
4
Pay cash for freight charges related to the June 2 purchase
from Radio...
perating Asset Management Analysis Partial comparative balance sheet and income statement information for Posad Company is...
perating Asset Management Analysis Partial comparative balance
sheet and income statement information for Posad Company is as
follows: 2014 2013 Cash $ 13,600 $ 10,400 Marketable securities
7,200 17,200 Accounts receivable (net) 44,800 35,600 Inventory
54,400 49,600 Total current assets $120,000 $112,800 Accounts
payable $ 40,000 $ 28,200 Net sales $322,560 $220,720 Cost of goods
sold 217,600 203,360 Gross margin $104,960 $ 17,360 In 2012, the
year-end balances for Accounts Receivable and Inventory were
$32,400 and $51,200, respectively. Accounts Payable...
Oriole Company sells three different products. The following information is available on December 31: Inventory item...
Oriole Company sells three different products. The following
information is available on December 31:
Inventory item
Units.
Cost per unit.
Market value per unit
X
350
$5
$4.00
Y
700
$2.0
$1.50
Z
1740
$3.0
$4.50
When applying the lower of cost or market rule to each item, what
will Oriole total ending inventory balance be?
Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances...
Income Statement and Retained Earnings
The Huff Company presents the following partial list of account
balances taken from its December 31, 2019 adjusted trial
balance:
Sales (net)
$123,000
Operating expenses
$20,600
Interest expense
4,300
Common stock, $5 par
5,500
Cost of goods sold
51,000
Retained earnings, 1/1/2019
41,700
The following information is also available for 2019 and is not
reflected in the preceding accounts:
The common stock has been outstanding all year. A cash dividend
of $1.3 per share was...
Tidwell Company has provided the following partial comparative balance sheets and the income statement for 20X2....
Tidwell Company has provided the following partial comparative
balance sheets and the income statement for 20X2.
Tidwell Company
Comparative Balance Sheets
At December 31, 20X1 and 20X2
1
20X1
20X2
2
Current assets:
3
Accounts receivable
$346,000.00
$284,000.00
4
Inventories
122,000.00
147,000.00
5
Current liabilities:
6
Accounts payable
302,000.00
239,500.00
Tidwell Company
Income Statement
For the Year Ended December 31, 20X2
1
Revenues
$1,204,000.00
2
Gain on sale of equipment
49,000.00
3
Cost of goods sold
(655,000.00)
4
Depreciation expense...
Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2. Swasey...
Swasey Company provided the following partial comparative
balance sheets and the income statement for 20X2.
Swasey Company
Partial Comparative Balance Sheets
At December 31, 20X1 and 20X2
1
20X1
20X2
2
Current Assets
3
Accounts receivable
745,000.00
677,000.00
4
Inventories
295,000.00
315,000.00
5
Current liabilities
6
Wages payable
705,000.00
680,000.00
Swasey Company
Income Statement
For the Year Ended December 31, 20X2
1
Revenues
3,120,000.00
2
Gain on sale of equipment
100,000.00
3
Cost of goods sold
(1,910,000.00)
4
Depreciation expense...
Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2. Swasey...
Swasey Company provided the following partial comparative
balance sheets and the income statement for 20X2.
Swasey Company
Comparative Balance Sheets
At December 31, 20X1 and 20X2
1
20X1
20X2
2
Current assets:
3
Cash
$235,500.00
$675,000.00
4
Accounts receivable
$753,000.00
$586,500.00
5
Inventories
303,000.00
316,000.00
6
Long-term assets:
7
Plant and equipment
2,193,000.00
2,151,000.00
8
Accumulated depreciation
(1,201,000.00)
(1,291,000.00)
9
Land
992,000.00
1,443,500.00
10
Total assets
$3,275,500.00
$3,881,000.00
11
Current liabilities:
12
Wages payable
$700,000.00
$511,000.00
13
Long-term liabilities:
14...
Blaylock Company provided the following partial comparative balance sheets and the income statement for 2016. Blaylock...
Blaylock Company provided the following partial comparative
balance sheets and the income statement for 2016.
Blaylock Company
Comparative Balance Sheets
At December 31, 2015 and 2016
1
2015
2016
2
Current assets:
3
Accounts receivable
$750,000.00
$582,500.00
4
Inventories
300,000.00
320,000.00
5
Long-term assets:
6
Plant and equipment
2,200,000.00
2,150,000.00
7
Accumulated depreciation
(1,200,000.00)
(1,270,000.00)
8
Land
1,000,000.00
1,437,500.00
9
Current liabilities:
10
Wages payable
$700,000.00
$515,000.00
11
Long-term liabilities:
12
Bonds payable
0.00
385,000.00
13
Mortgage payable
100,000.00
0.00...
Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2. Swasey...
Swasey Company provided the following partial comparative
balance sheets and the income statement for 20X2.
Swasey Company
Comparative Balance Sheets
At December 31, 20X1 and 20X2
1
20X1
20X2
2
Current assets:
3
Cash
$210,500.00
$645,500.00
4
Accounts receivable
$750,000.00
$583,000.00
5
Inventories
301,000.00
317,000.00
6
Long-term assets:
7
Plant and equipment
2,209,000.00
2,142,000.00
8
Accumulated depreciation
(1,193,000.00)
(1,257,000.00)
9
Land
998,000.00
1,444,500.00
10
Total assets
$3,275,500.00
$3,875,000.00
11
Current liabilities:
12
Wages payable
$699,000.00
$514,000.00
13
Long-term liabilities:
14...
Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances...
Income Statement and Retained Earnings
The Huff Company presents the following partial list of account
balances taken from its December 31, 2016 adjusted trial
balance:
Sales (net)
$122000
Operating expenses
$22500
Interest expense
3200
Common stock, $5 par
22000
Cost of goods sold
70000
Retained earnings, 1/1/2016
45500
The following information is also available for 2016 and is not
reflected in the preceding accounts:
The common stock has been outstanding all year. A cash dividend
of $1.32 per share was...
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