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)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hh1.
Transcribed Image Text: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)
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