cesCansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. Thecompany began 2024 with inventory of 4,500 units of its only product. The beginning inventory balance of $64,000 consisted of thefollowing layers:2,000 units at $12 per unit2,500 units at $16 per unitBeginning inventory202420252026During the three years 2024-2026, the cost of inventory remained constant at $18 per unit. Unit purchases and sales during theseyears were as follows:Purchases10,00013,00012,000Sales11,00014,50013,000==Required:1. Calculate cost of goods sold for 2024, 2025, and 2026.2. Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for each of the three years.3. Determine the effects of LIFO liquidation on cost of goods sold and net income for 2024, 2025, and 2026. Cansela's effectiveincome tax rate is 25%.202420252026$ 24,00040,000$ 64,000Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Calculate cost of goods sold for 2024, 2025, and 2026.Cost of Goods Sold$314,000wwwCheck

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Description: cesCansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. Thecompany began 2024 with inventory of 4,500 units of its only product. The beginning inventory balance of $64,000 consiste

LIFO means Last In First Out, which means that the inventory that has been brought into business at…

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Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company began 2024 with inventory of 4,500 units of its only product. The beginning inventory balance of $64,000 consisted of the following layers: 2,000 units at $12 per unit 2,500 units at $16 per unit Beginning inventory During the three years 2024-2026, the cost of inventory remained constant at $18 per unit. Unit purchases and sales during these years were as follows: 2024 2025 2026 Purchases 10,000 13,000 12,000 $ 24,000 40,000 $ 64,000 Sales 11,000 14,500 13,000 Required: 1. Calculate cost of goods sold for 2024, 2025, and 2026. 2. Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for each of the three years. 3. Determine the effects of LIFO liquidation on cost of goods sold and net income for 2024, 2025, and 2026. Cansela's effective income tax rate is 25%.

Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company began 2024 with inventory of 4,500 units of its only product. The beginning inventory balance of $64,000 consisted of the following layers: 2,000 units at $12 per unit 2,500 units at $16 per unit Beginning inventory During the three years 2024-2026, the cost of inventory remained constant at $18 per unit. Unit purchases and sales during these years were as follows: 2024 2025 2026 Purchases 10,000 13,000 12,000 $ 24,000 40,000 $ 64,000 Sales 11,000 14,500 13,000 Required: 1. Calculate cost of goods sold for 2024, 2025, and 2026. 2. Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for each of the three years. 3. Determine the effects of LIFO liquidation on cost of goods sold and net income for 2024, 2025, and 2026. Cansela's effective income tax rate is 25%.

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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Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-2,600 units; cost $6.70 each. August 8 Purchased 13,000 units for $6.10 each. August 14 Sold 10,400 units for $12.60 each. August 18 Purchased 7,800 units for $5.60 each. August 25 Sold 9,400 units for $11.60 each. August 28 Purchased 4,600 units for $5.80 each. August 31 Inventory on hand-8,200 units. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using last-in, first-out (LIFO). Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Perpetual LIFO: Number of units Cost per unit Cost of Goods Available for Sale Number of units sold Cost per unit Cost of Goods Sold Number of units sold Cost per unit Cost of Goods…
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