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Case D Tompkins Company reports the following inventory record for November: INVENTORY Date November 1 November 4 November 7 November 13 November 22 Activity Beginning balance Purchase Sale (@ $58 per unit) Purchase Sale (@ $58 per unit) Selling, administrative, and depreciation expenses for the month were $15,400. Tompkins's effective tax rate is 30 percent. Required: 1. Calculate the cost of ending inventory and the cost of goods sold under each of the following methods using periodic inventory system: 2-a. What is the gross profit percentage under the FIFO method? 2-b. What is net income under the LIFO method? # of Units 150 325 215 545 555 Cost/Unit $15 16 18 3. Tompkins applied the lower of cost or market method to value its inventory for reporting purposes at the end of the month Assuming Tompkins used the FIFO method and that inventory had a market replacement value of $17.40 per unit, what would Tompkins report on the balance sheet for inventory?

Case D Tompkins Company reports the following inventory record for November: INVENTORY Date November 1 November 4 November 7 November 13 November 22 Activity Beginning balance Purchase Sale (@ $58 per unit) Purchase Sale (@ $58 per unit) Selling, administrative, and depreciation expenses for the month were $15,400. Tompkins's effective tax rate is 30 percent. Required: 1. Calculate the cost of ending inventory and the cost of goods sold under each of the following methods using periodic inventory system: 2-a. What is the gross profit percentage under the FIFO method? 2-b. What is net income under the LIFO method? # of Units 150 325 215 545 555 Cost/Unit $15 16 18 3. Tompkins applied the lower of cost or market method to value its inventory for reporting purposes at the end of the month Assuming Tompkins used the FIFO method and that inventory had a market replacement value of $17.40 per unit, what would Tompkins report on the balance sheet for inventory?

FINANCIAL ACCOUNTING
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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Case D Tompkins Company reports the following inventory record for November: INVENTORY Date November 1 November 4 November 7 November 13 November 22 Activity Beginning balance Purchase Sale (@ $58 per unit) Purchase Sale (@ $58 per unit) Selling, administrative, and depreciation expenses for the month were $15,400. Tompkins's effective tax rate is 30 percent. Required: 1. Calculate the cost of ending inventory and the cost of goods sold under each of the following methods using periodic inventory system: 2-a. What is the gross profit percentage under the FIFO method? 2-b. What is net income under the LIFO method? # of Units 150 325 215 545 555 Cost/Unit $ 15 16 18 3. Tompkins applied the lower of cost or market method to value its inventory for reporting purposes at the end of the month. Assuming Tompkins used the FIFO method and that inventory had a market replacement value of $17.40 per unit, what would Tompkins report on the balance sheet for inventory? Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Case D Tompkins Company reports the following inventory record for November: INVENTORY Date November 1 November 4 November 7 November 13 November 22 Activity Beginning balance Purchase Sale (@ $58 per unit) Purchase Sale (@ $58 per unit) Selling, administrative, and depreciation expenses for the month were $15,400. Tompkins's effective tax rate is 30 percent. Required: 1. Calculate the cost of ending inventory and the cost of goods sold under each of the following methods using periodic inventory system: 2-a. What is the gross profit percentage under the FIFO method? 2-b. What is net income under the LIFO method? # of Units 150 325 215 545 555 Cost/Unit $ 15 16 18 3. Tompkins applied the lower of cost or market method to value its inventory for reporting purposes at the end of the month. Assuming Tompkins used the FIFO method and that inventory had a market replacement value of $17.40 per unit, what would Tompkins report on the balance sheet for inventory? Complete this question by entering your answers in the tabs below.
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