! Required information The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company for Year 3: Beginning inventory 300 units @ $21 Purchased 2,600 units @ $26 Purchased 1,100 units @ $27 January 1 April 1 October 1 During Year 3, Parvin sold 3,400 units of inventory at $45 per unit and incurred $15,200 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 $53,200, inventory of $6,300, common stock of $35,000, and retained earnings of $24,500. Required Prepare income statements using FIFO and LIFO. Note: Round intermediate calculations and final answers to the nearest whole dollar amount. PARVIN COMPANY Income Statements For the Year Ended December 31, Year 3 FIFO LIFO

! Required information The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company for Year 3: Beginning inventory 300 units @ $21 Purchased 2,600 units @ $26 Purchased 1,100 units @ $27 January 1 April 1 October 1 During Year 3, Parvin sold 3,400 units of inventory at $45 per unit and incurred $15,200 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 $53,200, inventory of $6,300, common stock of $35,000, and retained earnings of $24,500. Required Prepare income statements using FIFO and LIFO. Note: Round intermediate calculations and final answers to the nearest whole dollar amount. PARVIN COMPANY Income Statements For the Year Ended December 31, Year 3 FIFO LIFO

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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Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost Beginning inventory, January 1 3,200 $ 45 Transactions during the year: a. Purchase, January 30 4,550 55 b. Sale, March 14 ($100 each) (2,850 ) c. Purchase, May 1 3,250 75 d. Sale, August 31 ($100 each) (3,300 ) Assuming that for the Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1.
Taraz Company started a business at the beginning of Year 1. Inventory purchases and sales during the first four years of the company's business are as follows: Year 1 Year 2 Year 3 Year 4 Units Purchased 100 50 200 200 Cost per Unit $1.00 1.50 2.50 5.00 Units Sold 30 100 150 160 Taraz Company uses LIFO inventory valuation. 13. Compute Taraz Company's ending inventory as of the end of Year 4. [Note: Your answer should be in dollars, NOT in units.]
The following inventory transactions apply to Green Company for Year 2. January 1 Purchased 240 units @ $10 April 1 Sold 120 units @ $19 August 1 Purchased 420 units @ $11 December 1 Sold 525 units @ $20 The beginning inventory consisted of 165 units at $11 per unit. All transactions are cash transactions. Required Record these transactions in general journal format assuming Green uses the FIFO cost flow assumption and keeps perpetual records. Compute cost of goods sold for Year 2.
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 Beginning Inventory Purchased Purchased 400 units @ $30 2,000 units @ $35 600 units @ $38 During Year 2, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 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 $75,000, inventory of $12,000, common stock of $50,000, and retained earnings of $37,000: .Determine the cash flow from operating activities under FIFO and LIFO. (Amounts to be deducted should be indicated with minus ign.) PARVIN Company Cash Flows from Operating Activities Cash flows from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for operating expenses…
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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 Beginning Inventory Purchased Purchased 750 units @ $33 2,700 units @ $38 950 units@ $41 During Year 2, Parvin sold 4,000 units of inventory at $90 per unit and incurred $45,000 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 $82,000, inventory of $24,750, common stock of $57,000, and retained earnings of $49,750. Income tax paid using FIFO Income tax paid using LIFO c. Determine the amount of income tax that Parvin would pay using each cost flow method.
Gadubhi
Required information [The following information applies to the questions displayed below.] The following information pertains to Mason Company for Year 2. Beginning inventory Units purchased 152 units @ $48 430 units @ $72 Ending inventory consisted of 60 units. Mason sold 522 units at $144 each. All purchases and sales were made with cash. Operating expenses amounted to $4,050. c. Compute the amount of ending inventory using (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.) Ending Inventory FIFO LIFO Weighted average
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[The following information applies to the questions displayed below.] The following Information pertains to Mason Company for Year 2: Beginning inventory Units purchased 120 units @ $32 366 units @ $48 Ending Inventory consisted of 44 units. Mason sold 442 units at $96 each. All purchases and sales were made with cash. Operating expenses amounted to $3,450. Exercise 5-4A (Algo) Part b b. What is the amount of net Income using FIFO, LIFO, and weighted average? (Ignore Income tax considerations.) Note: Round cost per unit to 3 decimal places and other intermediate answers and final answers to the nearest whole dollar amount.