Required information P7-4 (Algo) Analyzing and Interpreting Income Manipulation Under the LIFO Inventory Method LO7-2, 7-3 [The following information applies to the questions displayed below.] Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventory records reflected the following: Beginning inventory Purchases Sales (51 units at $24,590 each) P7-4 Part 2 Inventory is valued at cost using the LIFO inventory method. > Answer is complete but not entirely correct. PACIFIC COMPANY Income Statement For the Current Year Ended $ Sales revenue Cost of goods sold Gross profit Expenses Pretax income Ending inventory 2. The management, for various reasons, is considering buying 23 additional units before December 31 year-end at $9,510 each. estate the income statement (and ending inventory), assuming that this purchase is made on December 31. Assume the LIFO method and the periodic inventory system are used by the company. 1,254,890 Units 23 42 556,510 x Unit Cost $11,510 10,010 698,380 X 300,000 $ 903,880 x $ 42 X Total Cost $264,730 420, 420
Required information P7-4 (Algo) Analyzing and Interpreting Income Manipulation Under the LIFO Inventory Method LO7-2, 7-3 [The following information applies to the questions displayed below.] Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventory records reflected the following: Beginning inventory Purchases Sales (51 units at $24,590 each) P7-4 Part 2 Inventory is valued at cost using the LIFO inventory method. > Answer is complete but not entirely correct. PACIFIC COMPANY Income Statement For the Current Year Ended $ Sales revenue Cost of goods sold Gross profit Expenses Pretax income Ending inventory 2. The management, for various reasons, is considering buying 23 additional units before December 31 year-end at $9,510 each. estate the income statement (and ending inventory), assuming that this purchase is made on December 31. Assume the LIFO method and the periodic inventory system are used by the company. 1,254,890 Units 23 42 556,510 x Unit Cost $11,510 10,010 698,380 X 300,000 $ 903,880 x $ 42 X Total Cost $264,730 420, 420
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
P7-4 (Algo) Analyzing and Interpreting Income Manipulation Under the LIFO Inventory Method LO7-2, 7-3
[The following information applies to the questions displayed below.]
Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventory
records reflected the following:
Beginning inventory
Purchases
Sales (51 units at $24,590 each)
P7-4 Part 2
Inventory is valued at cost using the LIFO inventory method.
Answer is complete but not entirely correct.
PACIFIC COMPANY
Income Statement
For the Current Year Ended
$
2. The management, for various reasons, is considering buying 23 additional units before December 31 year-end at $9,510 each.
Restate the income statement (and ending inventory), assuming that this purchase is made on December 31. Assume the LIFO method
and the periodic inventory system are used by the company.
Sales revenue
Cost of goods sold
Gross profit
Expenses
Pretax income
Ending inventory
Units
23
42
1,254,890
Unit Cost
$11,510
10,010
556,510 X
698,380
300,000
$ 903,880 X
$
42 X
Total Cost
$ 264,730
420, 420](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05cd34f9-5e43-4bc9-a142-43ab428a0bd3%2Fe6fc269f-cbe8-434a-81c5-a874550ae6b5%2F13fnokp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
P7-4 (Algo) Analyzing and Interpreting Income Manipulation Under the LIFO Inventory Method LO7-2, 7-3
[The following information applies to the questions displayed below.]
Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventory
records reflected the following:
Beginning inventory
Purchases
Sales (51 units at $24,590 each)
P7-4 Part 2
Inventory is valued at cost using the LIFO inventory method.
Answer is complete but not entirely correct.
PACIFIC COMPANY
Income Statement
For the Current Year Ended
$
2. The management, for various reasons, is considering buying 23 additional units before December 31 year-end at $9,510 each.
Restate the income statement (and ending inventory), assuming that this purchase is made on December 31. Assume the LIFO method
and the periodic inventory system are used by the company.
Sales revenue
Cost of goods sold
Gross profit
Expenses
Pretax income
Ending inventory
Units
23
42
1,254,890
Unit Cost
$11,510
10,010
556,510 X
698,380
300,000
$ 903,880 X
$
42 X
Total Cost
$ 264,730
420, 420
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