Jaydip January 1- Beginning inventory 400 units @$17 April 1- Purchased 2700 units @$22 October 1- Purchased 1100 units @$23 The following information pertains to the inventory of Parvin Company for Year 3: January 1 April 1 October 1 Beginning inventory 400 units $17 Purchased 2,700 units $22 Purchased 1,100 units @ $23 During Year 3, Parvin sold 3,570 units of inventory at $41 per unit and incurred $17,300 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions . Assume a 30 percent income tax rate . Parvin started the period with cash of $106,200 , Inventory of $6,800, common stock of $89,00 and retained earnings of $24,000. Requirement A: Prepare income statements using FIFO and LIFO Requirement B: Determine the amount of income tax that Pravin would pay using each cost flow method. Requirement C: Determine the cash flow from operating activities under FIFO and LIFO
Jaydip
January 1- Beginning inventory 400 units @$17 April 1- Purchased 2700 units @$22 October 1- Purchased 1100 units @$23
The following information pertains to the inventory of Parvin Company for Year 3: January 1 April 1 October 1 Beginning inventory 400 units $17 Purchased 2,700 units $22 Purchased 1,100 units @ $23 During Year 3, Parvin sold 3,570 units of inventory at $41 per unit and incurred $17,300 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions . Assume a 30 percent income tax rate . Parvin started the period with cash of $106,200 , Inventory of $6,800, common stock of $89,00 and
Requirement A: Prepare income statements using FIFO and LIFO Requirement B: Determine the amount of income tax that Pravin would pay using each cost flow method. Requirement C: Determine the
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