The following data was obtained from the records of ABC Inc., for the current year. Sales during the year were 201 units. (SHOW YOUR WORK) Jan 1, 2021 Jan 11, 2021 Jan 23, 2021 January 31 Beginning Inventory Purchases Purchases 80 units at $8 65 units at $10 55 units at $12 53 units at $14 Purchases Required: Calculate the cost of the ENDING INVENTORY and the COST OF GOODS SOLD using: a) FIFO b) LIFO c) Prepare an income statement using the FIFO method for inventory valuation. Sales were $5000 and operating expenses were $2,000. The income tax rate is 25%.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following data was obtained from the records of ABC Inc., for the current year. Sales
during the year were 201 units. (SHOW YOUR WORK)
Jan 1, 2021
Jan 11, 2021
Jan 23, 2021
January 31
Beginning Inventory
Purchases
Purchases
80 units at $8
65 units at $10
55 units at $12
53 units at $14
Purchases
Required: Calculate the cost of the ENDING INVENTORY and the COST OF GOODS
SOLD using:
a) FIFO
b) LIFO
c) Prepare an income statement using the FIFO method for inventory valuation. Sales
were $5000 and operating expenses were $2,000. The income tax rate is 25%.
Transcribed Image Text:The following data was obtained from the records of ABC Inc., for the current year. Sales during the year were 201 units. (SHOW YOUR WORK) Jan 1, 2021 Jan 11, 2021 Jan 23, 2021 January 31 Beginning Inventory Purchases Purchases 80 units at $8 65 units at $10 55 units at $12 53 units at $14 Purchases Required: Calculate the cost of the ENDING INVENTORY and the COST OF GOODS SOLD using: a) FIFO b) LIFO c) Prepare an income statement using the FIFO method for inventory valuation. Sales were $5000 and operating expenses were $2,000. The income tax rate is 25%.
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