Question 2 of 3>9.9/ 33InventoriesPurchases and SalesBeginning (4,000 units)$8.000Total net sales (182,000 units)$755,300Ending (12,000 units)Total cost of goods purchased (190,000 units)466,000Purchases were made quarterly as follows.QuarterUnitsUnit CostTotal Cost150,000$2.20$110,000240,0002.3594,00040,0002.50100,000460,0002.70162.000190.000$466,000Operating expenses were $120,000, and the company's income tax rate is 40%.(a)Your AnswerCorrect AnswerYour answer is partially correct.Prepare comparative conderised income staternents for 2022 under FIFO and LIFO.CRANE INC.Condensed Income StatementsFor the Year Fnderd December 31, 2022FIFOLIFOSales Revenues755300755300Cost of Goods SoldBeginning Inventorya000 i8000 iCost of Goods Purchased466000466000Cast of Goods Avwailahıle for Sale v474000474000 iEnding inventoryCost of Goods SoldGross Profit / ILos)Operating ExpensesIncome before income TaxesIncne Tax ExpenseNet Income/(Loss)

FIFO Method assumed Inventory purchased at First shall be used first to make sales ; hence item in…

Answered: CRANE INC. Condensed Income Statements…

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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Knowledge Check Crane Works' uses a periodic inventory system. Its accounting records show the following as of December 31, 2025. Inventory, Dec. 31, 2025 Purchase Returns and Allowances Inventory, Jan. 1, 2025 Cost of goods purchased Cost of goods sold $ $4,050 $ 730 5,550 Compute cost of goods purchased and cost of goods sold. Freight-In Purchases Purchase Discounts $1,800 95,100 1,480 Sused Submit Answer
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CRANE INC. Condensed Income Statements For the Year Fnded Decenber 31, 2022 FIFO LIFO Sales Revenues 755300 755300 Cost of Goods Sold Beginning Inventory 8000 Cost of Goods Purchased 466000 466000 Cast of Goods Available for Sale v 474000 474000 i Ending inventory Cost of Goods Sold