JamsRUs - Accounting for Inventory The LIFO inventory records of JamsRUs indicated the following at December 31, 2024: Units Cost per unit Beginning inventory 1/1/24 7,500 $.90 Total Cost $ 6,750 2,500 1.30 3,250 Purchases 3/2/24 10,500 7.00 73,500 9/30/24 13,500 7.00 94,500 Available for sale 34,000 $178,000 The company follows the periodic inventory method and assumes a LIFO cost flow assumption. An ending inventory revealed 7,000 units at December 31, 2024. The 27,000 units sold during the year were sold for $12 per unit. Assume selling, general and administrative (SG&A) expenses of $40,000 and a tax rate of 35%. JamsRUs prepares their financial statements annually on December 31. Assume LIFO reserve at 12/31/2023 was $60,000. 1. Prepare an income statement for the year ending December 31, 2024 under LIFO. 2. Calculate ending inventory to be reported on the balance sheet at December 31, 2024 under LIFO. 3. What is the current cost value of ending inventory at December 31, 2024?
JamsRUs - Accounting for Inventory The LIFO inventory records of JamsRUs indicated the following at December 31, 2024: Units Cost per unit Beginning inventory 1/1/24 7,500 $.90 Total Cost $ 6,750 2,500 1.30 3,250 Purchases 3/2/24 10,500 7.00 73,500 9/30/24 13,500 7.00 94,500 Available for sale 34,000 $178,000 The company follows the periodic inventory method and assumes a LIFO cost flow assumption. An ending inventory revealed 7,000 units at December 31, 2024. The 27,000 units sold during the year were sold for $12 per unit. Assume selling, general and administrative (SG&A) expenses of $40,000 and a tax rate of 35%. JamsRUs prepares their financial statements annually on December 31. Assume LIFO reserve at 12/31/2023 was $60,000. 1. Prepare an income statement for the year ending December 31, 2024 under LIFO. 2. Calculate ending inventory to be reported on the balance sheet at December 31, 2024 under LIFO. 3. What is the current cost value of ending inventory at December 31, 2024?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:JamsRUs - Accounting for Inventory
The LIFO inventory records of JamsRUs indicated the following at December 31, 2024:
Units
Cost per unit
Beginning inventory 1/1/24
7,500
$.90
Total Cost
$ 6,750
2,500
1.30
3,250
Purchases
3/2/24
10,500
7.00
73,500
9/30/24
13,500
7.00
94,500
Available for sale
34,000
$178,000
The company follows the periodic inventory method and assumes a LIFO cost flow
assumption. An ending inventory revealed 7,000 units at December 31, 2024. The
27,000 units sold during the year were sold for $12 per unit. Assume selling, general
and administrative (SG&A) expenses of $40,000 and a tax rate of 35%. JamsRUs
prepares their financial statements annually on December 31. Assume LIFO reserve at
12/31/2023 was $60,000.
1. Prepare an income statement for the year ending December 31, 2024 under LIFO.
2. Calculate ending inventory to be reported on the balance sheet at December 31,
2024 under LIFO.
3. What is the current cost value of ending inventory at December 31, 2024?
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