Problem 07-11 (Algo) [LO 7-4, 7-11] Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,850 units of product and incurred $370,000 direct material cost and $240,500 direct labor costs. For financial statement purposes, XYZ capitalized $157,250 indirect costs to inventory. For tax purposes, it had to capitalize $214,600 indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 430 units in inventory. In its second year of operations, XYZ manufactured 3,700 units of product and incurred $821,400 direct material cost and $508,750 direct labor costs. For financial statement purposes, XYZ capitalized $257,150 indirect costs to inventory. For tax purposes, it had to capitalize $357,050 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 470 items in inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. b. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. Complete this question by entering your answers in the tabs below. Required A Required B Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. Note: Round down the number of units to whole number. Cost of beginning inventory Total cost of units produced Cost of units available for sale Cost of ending inventory Cost of goods sold Book Tax Problem 07-11 (Algo) [LO 7-4, 7-11] Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,850 units of product and incurred $370,000 direct material cost and $240,500 direct labor costs. For financial statement purposes, XYZ capitalized $157,250 indirect costs to inventory. For tax purposes, it had to capitalize $214,600 indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 430 units in inventory. In its second year of operations, XYZ manufactured 3,700 units of product and incurred $821,400 direct material cost and $508,750 direct labor costs. For financial statement purposes, XYZ capitalized $257,150 indirect costs to inventory. For tax purposes, it had to capitalize $357,050 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 470 items in inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. b. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. Complete this question by entering your answers in the tabs below. Required A Required B Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. Note: Round down the number of units to whole number. Problem Company XY 1,600 units XYZ capitali the UNICAP units at prod capitalized $ UNICAP Required: e. Compute costing co b. Compute costing co Cost of beginning inventory Total cost of units produced Cost of units available for sale Cost of ending inventory Cost of goods sold Book Tax Complete Required A Scr Aut

Problem 07-11 (Algo) [LO 7-4, 7-11] Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,850 units of product and incurred $370,000 direct material cost and $240,500 direct labor costs. For financial statement purposes, XYZ capitalized $157,250 indirect costs to inventory. For tax purposes, it had to capitalize $214,600 indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 430 units in inventory. In its second year of operations, XYZ manufactured 3,700 units of product and incurred $821,400 direct material cost and $508,750 direct labor costs. For financial statement purposes, XYZ capitalized $257,150 indirect costs to inventory. For tax purposes, it had to capitalize $357,050 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 470 items in inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. b. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. Complete this question by entering your answers in the tabs below. Required A Required B Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. Note: Round down the number of units to whole number. Cost of beginning inventory Total cost of units produced Cost of units available for sale Cost of ending inventory Cost of goods sold Book Tax Problem 07-11 (Algo) [LO 7-4, 7-11] Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,850 units of product and incurred $370,000 direct material cost and $240,500 direct labor costs. For financial statement purposes, XYZ capitalized $157,250 indirect costs to inventory. For tax purposes, it had to capitalize $214,600 indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 430 units in inventory. In its second year of operations, XYZ manufactured 3,700 units of product and incurred $821,400 direct material cost and $508,750 direct labor costs. For financial statement purposes, XYZ capitalized $257,150 indirect costs to inventory. For tax purposes, it had to capitalize $357,050 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 470 items in inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. b. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. Complete this question by entering your answers in the tabs below. Required A Required B Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. Note: Round down the number of units to whole number. Problem Company XY 1,600 units XYZ capitali the UNICAP units at prod capitalized $ UNICAP Required: e. Compute costing co b. Compute costing co Cost of beginning inventory Total cost of units produced Cost of units available for sale Cost of ending inventory Cost of goods sold Book Tax Complete Required A Scr Aut

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter12: S Corporations

Section: Chapter Questions

Problem 16CE

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