Additional information:The selling and administration expenses were $1,000 in the January.Income tax rate is 20%.Beginning cash balance on January 1, 2021 was $5,000. Also, assume that income tax andselling and administration expenses incurred in January 2021 that were paid with cash in this period.Required:Determine the cost of goods sold for January and ending inventory at January 31, 2012 using the FIFO method and both perpetual and periodic inventory systems.Prepare the multiple-step income statement for January 2021.Prepare the cash flows statement for January 2021. Your firm had the data of selling and purchasing of inventory during January 2021 as in the tablebelow:DateDescriptionNumber ofCost/UnitSellingPrice/UnitTotal CostUnitsOfTransactionBeginning100$5$500InventoriesJan 5Sold50$20Jan 6Purchased60$6$360Jan 10Sold40$25Jan 12Purchased50$5$250Jan 15Purchased100$6$600Jan 20Sold150$22Jan 25Purchased200$7$1400Jan 28Sold150$25

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Description: Additional information:The selling and administration expenses were $1,000 in the January.Income tax rate is 20%.Beginning cash balance on January 1, 2021 was $5,000. Also, assume that income tax andselling and administration expenses incurred in Jan

Inventory- The term inventory refers to the raw resources used in manufacture as well as the…

Answered: Additional information: The selling…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Additional information:

The selling and administration expenses were $1,000 in the January.
Income tax rate is 20%.
Beginning cash balance on January 1, 2021 was $5,000. Also, assume that income tax and

selling and administration expenses incurred in January 2021 that were paid with cash in this period.

Required:

Determine the cost of goods sold for January and ending inventory at January 31, 2012 using the FIFO method and both perpetual and periodic inventory systems.
Prepare the multiple-step income statement for January 2021.
Prepare the cash flows statement for January 2021.

Your firm had the data of selling and purchasing of inventory during January 2021 as in the table
below:
Date
Description
Number of
Cost/Unit
Selling
Price/Unit
Total Cost
Units
Of
Transaction
Beginning
100
$5
$500
Inventories
Jan 5
Sold
50
$20
Jan 6
Purchased
60
$6
$360
Jan 10
Sold
40
$25
Jan 12
Purchased
50
$5
$250
Jan 15
Purchased
100
$6
$600
Jan 20
Sold
150
$22
Jan 25
Purchased
200
$7
$1400
Jan 28
Sold
150
$25

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