Problem 1 - Inventory Methods Magic Jelly Beans Company Operating information Sales Price per case $ 150.00 Unit Unit Extended Quantity $ Price Cost $$$ Beginning Inventory 2,000 $ 90.00 $ 180,000.00 Purchased Units 7,000 $ 110.00 $ 770,000.00 Sold 2,000 Sold 4,000 Purchased Units 10,000 $ 130.00 $ 1,300,000.00 Purchased Units 4,000 $ 135.00 $ 540,000.00 Sold 6,000 Sold Units 5,000 Fixed Selling General and Administrative costs $ 75,000.00 Income Tax rate 35% Requirement: Calculate the Cost Flow assumptions for Revenue, Cost of Goods Sold, SGA Income Tax, Net Income and Ending Inventory using the following methods: A LIFO B FIFO C WEIGHTED AVERAGE ANSWER HERE: Part A Calculations Comments/Notes Revenue COGS GP SGA Operating Profit Income Tax Net Income Ending Inventory Part B Calculations Comments/Notes Revenue COGS GP SGA Operating Profit Income Tax Net Income Ending Inventory Part C Calculations Comments/Notes Revenue COGS GP SGA Operating Profit Income Tax Net Income Ending Inventory

Problem 1 - Inventory Methods Magic Jelly Beans Company Operating information Sales Price per case $ 150.00 Unit Unit Extended Quantity $ Price Cost $$$ Beginning Inventory 2,000 $ 90.00 $ 180,000.00 Purchased Units 7,000 $ 110.00 $ 770,000.00 Sold 2,000 Sold 4,000 Purchased Units 10,000 $ 130.00 $ 1,300,000.00 Purchased Units 4,000 $ 135.00 $ 540,000.00 Sold 6,000 Sold Units 5,000 Fixed Selling General and Administrative costs $ 75,000.00 Income Tax rate 35% Requirement: Calculate the Cost Flow assumptions for Revenue, Cost of Goods Sold, SGA Income Tax, Net Income and Ending Inventory using the following methods: A LIFO B FIFO C WEIGHTED AVERAGE ANSWER HERE: Part A Calculations Comments/Notes Revenue COGS GP SGA Operating Profit Income Tax Net Income Ending Inventory Part B Calculations Comments/Notes Revenue COGS GP SGA Operating Profit Income Tax Net Income Ending Inventory Part C Calculations Comments/Notes Revenue COGS GP SGA Operating Profit Income Tax Net Income Ending Inventory

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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Problem 1 - Inventory Methods

Magic Jelly Beans Company Operating information
Sales Price per case	$ 150.00
	Unit	Unit	Extended
	Quantity	$	Price
		Cost	$$$

Beginning Inventory	2,000	$ 90.00	$ 180,000.00

Purchased Units	7,000	$ 110.00	$ 770,000.00
Sold	2,000
Sold	4,000
Purchased Units	10,000	$ 130.00	$ 1,300,000.00
Purchased Units	4,000	$ 135.00	$ 540,000.00
Sold	6,000
Sold Units	5,000

Fixed Selling General and Administrative costs		$ 75,000.00
Income Tax rate	35%
Requirement: Calculate the Cost Flow assumptions for Revenue, Cost of Goods Sold, SGA
Income Tax, Net Income and Ending Inventory using the following methods:

A LIFO

B FIFO

C WEIGHTED AVERAGE

ANSWER HERE:

Part A

Calculations

Comments/Notes

Revenue

COGS

SGA

Operating Profit

Income Tax

Net Income

Ending Inventory

Part B

Calculations

Comments/Notes

Revenue

COGS

SGA

Operating Profit

Income Tax

Net Income

Ending Inventory

Part C

Calculations

Comments/Notes

Revenue

COGS

SGA

Operating Profit

Income Tax

Net Income

Ending Inventory

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