Question 100If beginning inventory is 40 units at $4 per unit, purchases are 20 units at $8 per unit and 10 units at $5 per unit, and sales are 30 units at $12 per unit then the value of ending inventory under LIFO is $150.TRUE OR FALSE? Balance Sheet2020Income Statement2020AssetsSales$530,000Cash$ 280,000Cost of Goods Sold148,400Accounts Receivable117,600Gross Profit$381,600Inventory89,600Interest Income53,00014,000$ 501,200Prepaid ExpensesTotal Income$434,600Total Current AssetsSales Salaries121,900Fixed Assets33,600Office Salaries26,500Total Assets$ 534,800Office Equipment Rental37,100Liabilities & EquityInterest Expense15,900Accounts Payable$90,916General & Administrative4,770Notes Payable48,132Total Expenses206,170Accrued Expenses42,784Income Before Tax228,430Taxes Payable37,436Income Taxes132,500Deferred Taxes48,132Net Income$95,930Total Current Liabilities$ 267,400Long-Term Notes123,004Total Liabilities$ 390,404Capital Stock53,480Retained Earnings90,916$ 144,396$ 534,800Total EquityTotal Liabilities & Equity

If beginning inventory is 40 units at $4 per unit, purchases are 20 units at $8 per unit and 10 units at $5 per unit, and sales are 30 units at $12 per unit then the value of ending inventory under LIFO is $150. TRUE OR FALSE?

If beginning inventory is 40 units at $4 per unit, purchases are 20 units at $8 per unit and 10 units at $5 per unit, and sales are 30 units at $12 per unit then the value of ending inventory under LIFO is $150. TRUE OR FALSE?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Question 100

TRUE OR FALSE?

Balance Sheet
2020
Income Statement
2020
Assets
Sales
$
530,000
Cash
$ 280,000
Cost of Goods Sold
148,400
Accounts Receivable
117,600
Gross Profit
$
381,600
Inventory
89,600
Interest Income
53,000
14,000
$ 501,200
Prepaid Expenses
Total Income
$
434,600
Total Current Assets
Sales Salaries
121,900
Fixed Assets
33,600
Office Salaries
26,500
Total Assets
$ 534,800
Office Equipment Rental
37,100
Liabilities & Equity
Interest Expense
15,900
Accounts Payable
$
90,916
General & Administrative
4,770
Notes Payable
48,132
Total Expenses
206,170
Accrued Expenses
42,784
Income Before Tax
228,430
Taxes Payable
37,436
Income Taxes
132,500
Deferred Taxes
48,132
Net Income
$
95,930
Total Current Liabilities
$ 267,400
Long-Term Notes
123,004
Total Liabilities
$ 390,404
Capital Stock
53,480
Retained Earnings
90,916
$ 144,396
$ 534,800
Total Equity
Total Liabilities & Equity

Expert Solution

Step 1

Under LIFO, the most recent products purchased (or produced) products are the first to be sold.

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Similar questions

Sh4
please dont provide answer in image format thank you
4
Please help with question is correct solution
Question #1 Unit cost/ Units Sales price Opening Inventory 2,000 3.70 Purchase #1 8,000 4.10 Sale #1 6,000 12.00 Purchase #2 5,000 4.30 Sale #2 3,000 12.00 Compute the following: a) Ending inventory (Perpetual) using FIFO. b) COGS (Perpetual) using moving weighted average. c) Ending inventory (Periodic) using weighted average.
answer in text form please (without image)
5
Question 3 (5%) Inventory data for Hot Buys Company for January 2020 are as follows: January I balance January 10 purchase 100 units at $28 January 15 sale January 21 purchase 90 units at $32 January 28 sale 80 units at $25 120 units 110 units Using FIFO, compute ending inventory as of January 31, 2020, and determine cost of goods sold for January.
FIFO inventory assumptions: Beginning inventory of 10 units @ $5 = $50 Purchases month #1 of 10 units @ $10 = $100 Purchases month #2 of 10 units @ $15 = $150 Cost of goods available for sale (subtotal) = $300 Less ending inventory of 10 units Equals cost of goods sold (also known as cost of sales) Under the FIFO inventory method, calculate the cost of goods sold or cost of sales. Using your computation of FIFO cost of goods sold, and further assuming sales equal $500 and operating expenses equal $50, what is the gross profit amount?

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