A. Compute the missing amounts in the income statement under three different inventory costing methods: (Ignore income taxes.) Sales revenue (3,000 units) Cost of goods sold: Beginning inventory (1,000 units @ $10 per unit) Purchases (4,000 units @ $12 per unit) Goods available for sale Ending inventory (2,000 units) Cost of goods sold Gross profit Operating expenses Net operating income (pretax) FIFO $90,000 10,000 (1) (2) (3) (4) (5) 20,000 (6) LIFO $90,000 10,000 (7) (8) (9) (10) (11) 20,000 (12) Average Cost $90,000 10,000 (13) (14) (15) (16) (17) 20,000 (18)

A. Compute the missing amounts in the income statement under three different inventory costing methods: (Ignore income taxes.) Sales revenue (3,000 units) Cost of goods sold: Beginning inventory (1,000 units @ $10 per unit) Purchases (4,000 units @ $12 per unit) Goods available for sale Ending inventory (2,000 units) Cost of goods sold Gross profit Operating expenses Net operating income (pretax) FIFO $90,000 10,000 (1) (2) (3) (4) (5) 20,000 (6) LIFO $90,000 10,000 (7) (8) (9) (10) (11) 20,000 (12) Average Cost $90,000 10,000 (13) (14) (15) (16) (17) 20,000 (18)

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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