Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.
Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need requirement 1a only
![Required information
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Daniel Company uses a periodic inventory system. Data for the current year: beginning
merchandise inventory (ending inventory December 31, prior year), 2,060 units at $36;
purchases, 7,830 units at $38; expenses (excluding income taxes), $192,700; ending
inventory per physical count at December 31, current year, 1,630 units; sales, 8,260 units;
sales price per unit, $77; and average income tax rate, 36 percent.
Required:
1-a. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.
1-b. Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your
intermediate calculations. Round your final answers to the nearest whole dollar amount.)
Income Statement
FIFO
LIFO
Average Cost
Sales revenue
$ 636,020
636,020
$
636,020
Cost of goods sold
Gross profit
Operating expenses
192,700
192,700
192,700
Pretax income
Income tax expense
Net income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F73e1ef85-ae85-41f3-bb68-709fc42df334%2F715972a5-8063-46ad-87d6-e7de0965aeaa%2Ftd63nx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Daniel Company uses a periodic inventory system. Data for the current year: beginning
merchandise inventory (ending inventory December 31, prior year), 2,060 units at $36;
purchases, 7,830 units at $38; expenses (excluding income taxes), $192,700; ending
inventory per physical count at December 31, current year, 1,630 units; sales, 8,260 units;
sales price per unit, $77; and average income tax rate, 36 percent.
Required:
1-a. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.
1-b. Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your
intermediate calculations. Round your final answers to the nearest whole dollar amount.)
Income Statement
FIFO
LIFO
Average Cost
Sales revenue
$ 636,020
636,020
$
636,020
Cost of goods sold
Gross profit
Operating expenses
192,700
192,700
192,700
Pretax income
Income tax expense
Net income
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