! Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2. January 1 April 1 October 1 During Year 2, Parvin sold 3,500 units of inventory at $80 per unit and incurred $46,000 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $84,000, inventory of $11,100, common stock of $59,000, and retained earnings of $36,100. Beginning Inventory Purchased Purchased Required a. Record the above transactions in general journal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of journal entries and T-accounts for each method. FIFO General Journal Complete this question by entering your answers in the tabs below. FIFO T accounts 300 units @ $37 2,900 units @ $42 500 units @ $45 View transaction list LIFO General Journal LIFO T accounts Record the above transactions in general journal form using FIFO. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) < Prev anima S 4 5 6 7 of 8 www + # Next >
! Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2. January 1 April 1 October 1 During Year 2, Parvin sold 3,500 units of inventory at $80 per unit and incurred $46,000 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $84,000, inventory of $11,100, common stock of $59,000, and retained earnings of $36,100. Beginning Inventory Purchased Purchased Required a. Record the above transactions in general journal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of journal entries and T-accounts for each method. FIFO General Journal Complete this question by entering your answers in the tabs below. FIFO T accounts 300 units @ $37 2,900 units @ $42 500 units @ $45 View transaction list LIFO General Journal LIFO T accounts Record the above transactions in general journal form using FIFO. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) < Prev anima S 4 5 6 7 of 8 www + # Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![**Chapter 5, Assignment 2: Inventory Management**
### Required Information
*The following information applies to the questions displayed below:*
The following information pertains to the inventory of Parvin Company during Year 2.
- **January 1:**
- Beginning Inventory: 300 units @ $37
- **April 1:**
- Purchased: 2,900 units @ $42
- **October 1:**
- Purchased: 500 units @ $45
During Year 2, Parvin sold 3,500 units of inventory at $80 per unit and incurred $46,000 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $84,000, inventory of $11,100, common stock of $59,000, and retained earnings of $36,100.
### Required Tasks
a. Record the above transactions in general journal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of journal entries and T-accounts for each method.
#### Note:
- Complete this question by entering your answers in the tabs below.
- FIFO General Journal
- FIFO T Accounts
- LIFO General Journal
- LIFO T Accounts
- Record the above transactions in general journal form using FIFO. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
### Tab Navigation
- The tab navigation enables efficient entry and retrieval of information needed to complete the task.
### Example Submission Fields
- **FIFO General Journal**:
- [Entry fields for recording FIFO-based transactions in the general journal]
- **FIFO T Accounts**:
- [Entry fields for posting FIFO-based transactions to T accounts]
- **LIFO General Journal**:
- [Entry fields for recording LIFO-based transactions in the general journal]
- **LIFO T Accounts**:
- [Entry fields for posting LIFO-based transactions to T accounts]
For any further assistance, please refer to the course materials or contact your instructor.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff74473dc-3178-45bf-9311-360a361a32fe%2F153a803d-aaa5-487e-ae73-8f745191a2c7%2Ferbk5qd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Chapter 5, Assignment 2: Inventory Management**
### Required Information
*The following information applies to the questions displayed below:*
The following information pertains to the inventory of Parvin Company during Year 2.
- **January 1:**
- Beginning Inventory: 300 units @ $37
- **April 1:**
- Purchased: 2,900 units @ $42
- **October 1:**
- Purchased: 500 units @ $45
During Year 2, Parvin sold 3,500 units of inventory at $80 per unit and incurred $46,000 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $84,000, inventory of $11,100, common stock of $59,000, and retained earnings of $36,100.
### Required Tasks
a. Record the above transactions in general journal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of journal entries and T-accounts for each method.
#### Note:
- Complete this question by entering your answers in the tabs below.
- FIFO General Journal
- FIFO T Accounts
- LIFO General Journal
- LIFO T Accounts
- Record the above transactions in general journal form using FIFO. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
### Tab Navigation
- The tab navigation enables efficient entry and retrieval of information needed to complete the task.
### Example Submission Fields
- **FIFO General Journal**:
- [Entry fields for recording FIFO-based transactions in the general journal]
- **FIFO T Accounts**:
- [Entry fields for posting FIFO-based transactions to T accounts]
- **LIFO General Journal**:
- [Entry fields for recording LIFO-based transactions in the general journal]
- **LIFO T Accounts**:
- [Entry fields for posting LIFO-based transactions to T accounts]
For any further assistance, please refer to the course materials or contact your instructor.
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Step 1: Define Inventory Valuation
VIEWStep 2: Computation of the cost of goods sold using the Periodic FIFO method and Recording Journal Entries
VIEWStep 3: Computation of the cost of goods sold using the Periodic LIFO method :
VIEWStep 4: Recording Journal Entries and Preparing t-accounts under FIFO Method
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