Required information[The following information applies to the questions displayed below.]Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventoryrecords reflected the following:Beginning inventoryPurchasesUnits2242Unit Cost$11,54010,040Total Cost$ 253,880421,680Sales (47 units at $24,670 each)Inventory is valued at cost using the LIFO inventory method.2. The management, for various reasons, is considering buying 22 additional units before December 31 year-end at $9,540 each.Restate the income statement (and ending inventory), assuming that this purchase is made on December 31. Assume the LIFO methodand the periodic inventory system are used by the company.PACIFIC COMPANYIncome StatementFor the Current Year EndedSales revenueCost of goods soldGross profitExpenses292,000Pretax incomeEnding inventory

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Description: Required information[The following information applies to the questions displayed below.]Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventoryrecords reflected the following:Beginning

Under the Last In, First Out (LIFO) method, the Cost of goods sold is calculated at the price of the…

Business

Accounting

2. The management, for various reasons, is considering buying 22 additional units before December 31 year-end at $9,540 each. Restate the income statement (and ending inventory), assuming that this purchase is made on December 31. Assume the LIFO method and the periodic inventory system are used by the company.

2. The management, for various reasons, is considering buying 22 additional units before December 31 year-end at $9,540 each. Restate the income statement (and ending inventory), assuming that this purchase is made on December 31. Assume the LIFO method and the periodic inventory system are used by the company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You have the following information for Tamarisk, Inc. for the month ended October 31, 2022. Tamarisk uses a periodic method for inventory. Date Description Units Unit Cost or Selling Price Oct. 1 Beginning inventory 60 24 Oct. 9 Purchase 115 26 Oct. 11 Sale 95 45 Oct. 17 Purchase 95 27 Oct. 22 Sale 60 50 Oct. 25 Purchase 70 29 Oct. 29 Sale 105 50 A(3) Calculate gross profit rate under each of the following: 1.LIFO 2.FIFO 3. Average-cost. Gross profit rate - LIFO% - FIFO% AND AVERAGE-COST %
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