Paulson's specializes in sound equipment. Company records indicate the following data for a line of speakers: (Click the icon to view the data.) Read the requirements. Requirement 1. Determine the amounts that Paulson's should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO. (Paulson's uses a perpetual inventory system.) Start by determining the amounts that Paulson's should report for cost of goods sold and ending inventory under a. FIFO. FIFO method cost of goods sold = FIFO method ending inventory = Determinie the amounts that Paulson's should report for cost of goods sold and ending inventory under b. LIFO. LIFO method cost of goods sold = LIFO method ending inventory = Requirement 2. Paulson's uses the FIFO method. Prepare the company's income statement for the month ended June 31, 2021, reporting gross profit. Operating expenses totaled $340, and the income tax rate was 35%. (Round answers to the nearest dollar.) Paulson's Net income Income Statement Month Ended June 31, 2021 Data table Date Jun 1 Jun 2 Jun 7 Jun 13 Item Balance Purchase Sale Sale Print Quantity 18 3 7 6 Unit Cost $ Done 49 64 Sale Price S 115 103 - X X
Paulson's specializes in sound equipment. Company records indicate the following data for a line of speakers: (Click the icon to view the data.) Read the requirements. Requirement 1. Determine the amounts that Paulson's should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO. (Paulson's uses a perpetual inventory system.) Start by determining the amounts that Paulson's should report for cost of goods sold and ending inventory under a. FIFO. FIFO method cost of goods sold = FIFO method ending inventory = Determinie the amounts that Paulson's should report for cost of goods sold and ending inventory under b. LIFO. LIFO method cost of goods sold = LIFO method ending inventory = Requirement 2. Paulson's uses the FIFO method. Prepare the company's income statement for the month ended June 31, 2021, reporting gross profit. Operating expenses totaled $340, and the income tax rate was 35%. (Round answers to the nearest dollar.) Paulson's Net income Income Statement Month Ended June 31, 2021 Data table Date Jun 1 Jun 2 Jun 7 Jun 13 Item Balance Purchase Sale Sale Print Quantity 18 3 7 6 Unit Cost $ Done 49 64 Sale Price S 115 103 - X X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Paulson's specializes in sound equipment. Company records indicate the following data for a line of speakers:
(Click the icon to view the data.)
Read the requirements.
Requirement 1. Determine the amounts that Paulson's should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO. (Paulson's uses a perpetual inventory system.)
Start by determining the amounts that Paulson's should report for cost of goods sold and ending inventory under a. FIFO.
FIFO method cost of goods sold =
FIFO method ending inventory =
Determinie the amounts that Paulson's should report for cost of goods sold and ending inventory under b. LIFO.
LIFO method cost of goods sold =
LIFO method ending inventory =
Requirement 2. Paulson's uses the FIFO method. Prepare the company's income statement for the month ended June 31, 2021, reporting gross profit. Operating expenses totaled $340, and the income tax rate was 35%. (Round answers to the nearest dollar.)
Paulson's
Net income
Income Statement
Month Ended June 31, 2021
Data table
Date
Jun 1
Jun 2
Jun 7
Jun 13
Item
Balance
Purchase
Sale
Sale
Print
Quantity
18
3
7
6
Unit Cost
S
Done
49
64
Sale Price
$
115
103
- X
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