Please help me answer this question K. Co. uses LIFO inventory method. At the end of the 2006accounting period, the company reported $10,000 of netearnings on I/S. The inventory balance on the 2006 B/S is$7,000. In the footnotes, LIFO reserve at the end of 2006 is$3,000 and LIFO reserve at the end of 2005 is $2,500. JJ Co.uses FIFO and reported 10,300 of net earnings on the 2006I/S. Which company has a higher earnings if both of thecompanies would use the same inventory method?

Step 1: Define Inventory methodThe inventory method is to evaluate the inventory (raw material or…

Answered: K. Co. uses LIFO inventory method. At…

Individual Income Taxes

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ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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Kante Company uses periodic FIFO for its internal report and periodic LIFO for its external reports. In its FIFO-based internal reports, Kante had a beginning inventory of $96,000, an ending inventory of $116,000, and a pretax income of $750,000. Under LIFO, Kante's beginning inventory would have been $78,000, and its ending inventory would have been $109,000. How much pretax income would Kante report in its external reports?
A company has the following information available that was used to report inventory using the dollar-value LIFO method. Year Year-End Cost Cost Index 12/31/2020 $250,000 1.00 12/31/2021 259,000 1.06 For the year ended 12/31/2021, the company reported inventory of $274,540 ($259,000 × 1.06). Which of the following statements is correct? O The amount reported for ending inventory should be calculated as $250,000 + ($9,000 × 1.06). O The amount reported for ending inventory should be calculated as $250,000 + ($9,000/1.06). The amount reported for ending inventory is correct. O The amount reported for ending inventory should be calculated as $259,000/1.06.
Sandhill Inc. reported inventory at the beginning of the current year of $440000 and at the end of the current year of $491000. If net sales for the current year are $4829200 and the corresponding cost of sales totaled $3724000, what is the inventory turnover for the current year? 10.37. 7.58. 9.84. 8.00.
In March 2015, XYZ Corp. purchased an item of inventory for $30. By June, that item could be purchased for $26 and re-sold for $31. XYZ's normal profit for the item is $4. At what amount should XYZ report the item in its June 30 balance sheet? XYZ uses the LIFO inventory cost flow assumption. (omit , and $ in the answer) 30
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Romanoff Industries had the following inventory transactions occur during 2013: Units Cost/unit 2/1/13 Purchase 18 $45 3/14/13 Purchase 31 $47 5/1/13 Purchase 22 $49 The company sold 50 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? a. $1,106 b. $1,184 c. $2,316 d. $2,394
Coulter Company uses the LIFO inventory method under theperiodic inventory system. The following data were available for the month ofJanuary, 2009: Units Cost per Unit Inventory,January 1 200 $5.00 PurchaseNo. 1 400 $5.50 SaleNo. 1 (sold at $12.00 per unit) 500 PurchaseNo. 2 700 $6.00 SaleNo. 2 (sold at $13.00 per unit) 500 Compute the following:Beginning inventoryEnding inventoryGoods available for saleCost of goods soldGross margin
Sunland Company had ending inventory at end-of-year prices of $184,500 at December 31, 2016; 204,700 at December 31, 2017; and $220,000 at December 31, 2018. The year-end price indexes were 100 at 12/31/16, 106 at 12/31/17, and 110 at 12/31/18. Compute the ending inventory for Sunland Company for 2016 through 2018 using the dollar-value LIFO method. (Round answers to 0 decimal places, e.g. 5,275.) 2016 2017 2018 Ending inventory %24 %24 %24
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