In: Accounting
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? |
1-Jan | Inventory (100*$25)=2500 | $2,500 | |
Date | accounts title | Dr | Cr |
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 | ||
If any doubt please comment |