The following information pertains to the inventory of Parvin Company during Year 2. January 1 April 1 October 1 450 units@ $32 2,250 units @ $37 650 units@ $40 Beginning Inventory Purchased Purchased During Year 2, Parvin sold 3,000 units of inventory at $95 per unit and incurred $47,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $87,000, inventory of $14,400, common stock of $62,000, and retained earnings of $39,400. 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. Complete this question by entering your answers in the tabs below. FIFO General Journal FIFO T accounts LIFO General Journal LIFO T accounts

The following information pertains to the inventory of Parvin Company during Year 2. January 1 April 1 October 1 450 units@ $32 2,250 units @ $37 650 units@ $40 Beginning Inventory Purchased Purchased During Year 2, Parvin sold 3,000 units of inventory at $95 per unit and incurred $47,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $87,000, inventory of $14,400, common stock of $62,000, and retained earnings of $39,400. 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. Complete this question by entering your answers in the tabs below. FIFO General Journal FIFO T accounts LIFO General Journal LIFO T accounts

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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TB MC Qu. 11-161 (Algo) A company purchases its inventory from... A company purchases its inventory from suppliers on account. During the year, its inventory account increased by $18 million and its accounts payable to suppliers decreased by $2 million. If cost of goods sold was $460 million, its cash outflows to inventory suppliers totaled: Multiple Choice $480 million. $440 million. $476 million. $444 million.
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am. 401.
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