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Daniel Company uses a periodic inventory system. Data for 2015: beginning merchandise inventory (December 31, 2014), 2,100 units at $35; purchases, 7,990 units at $37; expenses (excluding income taxes). $192,800; ending inventory per physical count at December 31, 2015, 1,680; sales, 8,410 units; sales price per unit, $77; and average income tax rate, 33 percent. Required: 1. Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your intermediate calculations.) Cost of Goods Sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses Pretax income Income tax expense Net income Units Inventory Costing Method FIFO LIFO 2,100 $ 7,990 10,090 1,680 8,410 S 369,130 73,500 $ FIFO 295,630 369,130 62,160 Average Cost $ 647,570 $ 647,570 $ 647,570 LIFO 73,500 $ 295,630 369,130 58,800 Average Cost 73,500 295,630 369,130 61,461

Daniel Company uses a periodic inventory system. Data for 2015: beginning merchandise inventory (December 31, 2014), 2,100 units at $35; purchases, 7,990 units at $37; expenses (excluding income taxes). $192,800; ending inventory per physical count at December 31, 2015, 1,680; sales, 8,410 units; sales price per unit, $77; and average income tax rate, 33 percent. Required: 1. Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your intermediate calculations.) Cost of Goods Sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses Pretax income Income tax expense Net income Units Inventory Costing Method FIFO LIFO 2,100 $ 7,990 10,090 1,680 8,410 S 369,130 73,500 $ FIFO 295,630 369,130 62,160 Average Cost $ 647,570 $ 647,570 $ 647,570 LIFO 73,500 $ 295,630 369,130 58,800 Average Cost 73,500 295,630 369,130 61,461

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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Daniel Company uses a periodic inventory system. Data for 2015: beginning merchandise inventory (December 31, 2014), 2,100 units at $35; purchases, 7,990 units at $37; expenses (excluding income taxes), $192,800; ending inventory per physical count at December 31, 2015, 1,680; sales, 8,410 units; sales price per unit, $77; and average income tax rate, 33 percent. Required: 1. Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your intermediate calculations.) Cost of Goods Sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses Pretax income Income tax expense Net income Units Inventory Costing Method FIFO LIFO 2,100 $ 7,990 73,500 $ 295,630 10,090 369,130 1,680 62,160 8,410 $ 369,130 LIFO 73,500 $ 295,630 369,130 58,800 FIFO Average Cost $ 647,570 $ 647,570 $ 647,570 Average Cost 73,500 295,630 369,130 61,461
Transcribed Image Text:Daniel Company uses a periodic inventory system. Data for 2015: beginning merchandise inventory (December 31, 2014), 2,100 units at $35; purchases, 7,990 units at $37; expenses (excluding income taxes), $192,800; ending inventory per physical count at December 31, 2015, 1,680; sales, 8,410 units; sales price per unit, $77; and average income tax rate, 33 percent. Required: 1. Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your intermediate calculations.) Cost of Goods Sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses Pretax income Income tax expense Net income Units Inventory Costing Method FIFO LIFO 2,100 $ 7,990 73,500 $ 295,630 10,090 369,130 1,680 62,160 8,410 $ 369,130 LIFO 73,500 $ 295,630 369,130 58,800 FIFO Average Cost $ 647,570 $ 647,570 $ 647,570 Average Cost 73,500 295,630 369,130 61,461
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