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Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions a. Inventory, Beginning For the year: b. Purchase, April 11 Units 350 Unit Cost $ 12 800 10 850 16 350 e. Sale, July 3 (sold for $40 per unit) 640 f. Operating expenses (excluding income tax expense), $18,300 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) Prepare an Income Statement that shows under the FIFO method, LIFO method and weighted average method.

Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions a. Inventory, Beginning For the year: b. Purchase, April 11 Units 350 Unit Cost $ 12 800 10 850 16 350 e. Sale, July 3 (sold for $40 per unit) 640 f. Operating expenses (excluding income tax expense), $18,300 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) Prepare an Income Statement that shows under the FIFO method, LIFO method and weighted average method.

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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Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions a. Inventory, Beginning For the year: b. Purchase, April 11 Units Unit Cost 350 $ 12 800 10 850 16 350 640 f. Operating expenses (excluding income tax expense), $18,300 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) e. Sale, July 3 (sold for $40 per unit) Prepare an Income Statement that shows under the FIFO method, LIFO method and weighted average method. ORION IRON CORPORATION Income Statement For the Year Ended December 31 FIFO LIFO Weighted Average Income from operations < Required 3 Required 6 >
Transcribed Image Text:Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions a. Inventory, Beginning For the year: b. Purchase, April 11 Units Unit Cost 350 $ 12 800 10 850 16 350 640 f. Operating expenses (excluding income tax expense), $18,300 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) e. Sale, July 3 (sold for $40 per unit) Prepare an Income Statement that shows under the FIFO method, LIFO method and weighted average method. ORION IRON CORPORATION Income Statement For the Year Ended December 31 FIFO LIFO Weighted Average Income from operations < Required 3 Required 6 >
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