Requirements: Complete the Ending Inventory and Cost of Goods Sold schedules for each inventory costing method; FIFO, LIFO, WAVG. Complete the Income Statement and Cash Flow Statement under each inventory costing method. Explain the differences in Net Income under each inventory costing method. Notes: Operating Expenses and taxes were paid in cash. The company's beginning cash balance was $1,200. Cost of Goods Available For Sale Unit Total Units Price Cost Beginning Inventory 150.0 15.0 First Purchase (cash) 100.0 16.0 Second Purchase (cash) 190.0 17.2 Total Cost of Goods Available for Sale Weighted Average Cost Cost of Goods Available For Sale Unit Total Units Price Cost Beginning Inventory 150.0 15.0 First Purchase (cash) 100.0 16.0 Second Purchase (cash) 190.0 17.2 Total Cost of Goods Available for Sale Weighted Average Cost WEIGHTED Income Statements FIFO LIFO AVERAGE Sale (330 units @ $30 each) (cash) Cost of Goods Sold Gross Margin Operating Expenses $1500 (cash) Income before Taxes Income Tax Expense (30%) Net Income WEIGHTED Statement of Cash Flows FIFO LIFO AVERAGE Cash from Operating Activities: Cash received from Customers Cash paid for Inventory Purchased Cash paid for Operating Expenses Cash paid for Income Taxes Net Cash Flow from Operating Activities Beginning Cash Ending Cash FIFO Ending Inventory FIFO Cost of Goods Sold LIFO Ending Inventory LIFO Cost of Goods Sold Weighted Avg Ending Inv Weighted Average COGS Unit Total Unit Total Unit Total Unit Total Unit Total Unit Total Units Price Cost Units Price Cost Units Price Cost Units Price Cost Units Price Cost Units Price Cost Check EI + CGS (In Units) Check EI + CGS (In Units) Check EI + CGS (In Units) EI + CGS (Total Cost) EI + CGS (Total Cost) EI + CGS (Total Cost)

Requirements: Complete the Ending Inventory and Cost of Goods Sold schedules for each inventory costing method; FIFO, LIFO, WAVG. Complete the Income Statement and Cash Flow Statement under each inventory costing method. Explain the differences in Net Income under each inventory costing method. Notes: Operating Expenses and taxes were paid in cash. The company's beginning cash balance was $1,200. Cost of Goods Available For Sale Unit Total Units Price Cost Beginning Inventory 150.0 15.0 First Purchase (cash) 100.0 16.0 Second Purchase (cash) 190.0 17.2 Total Cost of Goods Available for Sale Weighted Average Cost Cost of Goods Available For Sale Unit Total Units Price Cost Beginning Inventory 150.0 15.0 First Purchase (cash) 100.0 16.0 Second Purchase (cash) 190.0 17.2 Total Cost of Goods Available for Sale Weighted Average Cost WEIGHTED Income Statements FIFO LIFO AVERAGE Sale (330 units @ $30 each) (cash) Cost of Goods Sold Gross Margin Operating Expenses $1500 (cash) Income before Taxes Income Tax Expense (30%) Net Income WEIGHTED Statement of Cash Flows FIFO LIFO AVERAGE Cash from Operating Activities: Cash received from Customers Cash paid for Inventory Purchased Cash paid for Operating Expenses Cash paid for Income Taxes Net Cash Flow from Operating Activities Beginning Cash Ending Cash FIFO Ending Inventory FIFO Cost of Goods Sold LIFO Ending Inventory LIFO Cost of Goods Sold Weighted Avg Ending Inv Weighted Average COGS Unit Total Unit Total Unit Total Unit Total Unit Total Unit Total Units Price Cost Units Price Cost Units Price Cost Units Price Cost Units Price Cost Units Price Cost Check EI + CGS (In Units) Check EI + CGS (In Units) Check EI + CGS (In Units) EI + CGS (Total Cost) EI + CGS (Total Cost) EI + CGS (Total Cost)

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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Question

Requirements:

Complete the Ending Inventory and Cost of Goods Sold schedules for each inventory costing method; FIFO, LIFO, WAVG.
Complete the Income Statement and Cash Flow Statement under each inventory costing method.
Explain the differences in Net Income under each inventory costing method.

Notes: Operating Expenses and taxes were paid in cash. The company's beginning cash balance was $1,200.

Cost of Goods Available For Sale
		Unit	Total
	Units	Price	Cost
Beginning Inventory	150.0	15.0
First Purchase (cash)	100.0	16.0
Second Purchase (cash)	190.0	17.2
Total Cost of Goods Available for Sale

Weighted Average Cost
			Cost of Goods Available For Sale
					Unit	Total
				Units	Price	Cost
			Beginning Inventory	150.0	15.0
			First Purchase (cash)	100.0	16.0
			Second Purchase (cash)	190.0	17.2
			Total Cost of Goods Available for Sale

			Weighted Average Cost

			WEIGHTED
Income Statements	FIFO	LIFO	AVERAGE
Sale (330 units @ $30 each) (cash)
Cost of Goods Sold
Gross Margin
Operating Expenses $1500 (cash)
Income before Taxes
Income Tax Expense (30%)
Net Income
			WEIGHTED
Statement of Cash Flows	FIFO	LIFO	AVERAGE
Cash from Operating Activities:
Cash received from Customers
Cash paid for Inventory Purchased
Cash paid for Operating Expenses
Cash paid for Income Taxes
Net Cash Flow from Operating Activities
Beginning Cash
Ending Cash

FIFO Ending Inventory

FIFO Cost of Goods Sold

LIFO Ending Inventory

LIFO Cost of Goods Sold

Weighted Avg Ending Inv

Weighted Average COGS

Unit

Total

Unit

Total

Unit

Total

Unit

Total

Unit

Total

Unit

Total

Units

Price

Cost

Units

Price

Cost

Units

Price

Cost

Units

Price

Cost

Units

Price

Cost

Units

Price

Cost

Check

EI + CGS (In Units)

Check

EI + CGS (In Units)

Check

EI + CGS (In Units)

EI + CGS (Total Cost)

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