The following information pertains to the inventory Parvin Company. Jan. 1 Apr. 1 Oct. 1 400 units 2,700 units Beginning inventory Purchased Purchased During the year, Parvin sold 3,400 units of inventory at $44 per unit and incurred $15.900 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 $116,800, inventory of $7.200, common stock of $100,000, and retained earnings of $24,000 Required a. Prepare income statements using FIFO and LIFO b. Determine the amount of income tax that Parvin would pay using each cost flow method c. Determine the cash flow from operating activities under FIFO and LIFO Required A Required B Complete this question by entering your answers in the tabs below. Required C @ $18 $23 900 units @ $24 PARVIN COMPANY Income Statements For the Year Ended December 31 FIFO Prepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount.) LIFO

The following information pertains to the inventory Parvin Company. Jan. 1 Apr. 1 Oct. 1 400 units 2,700 units Beginning inventory Purchased Purchased During the year, Parvin sold 3,400 units of inventory at $44 per unit and incurred $15.900 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 $116,800, inventory of $7.200, common stock of $100,000, and retained earnings of $24,000 Required a. Prepare income statements using FIFO and LIFO b. Determine the amount of income tax that Parvin would pay using each cost flow method c. Determine the cash flow from operating activities under FIFO and LIFO Required A Required B Complete this question by entering your answers in the tabs below. Required C @ $18 $23 900 units @ $24 PARVIN COMPANY Income Statements For the Year Ended December 31 FIFO Prepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount.) 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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Don Pedro has not kept accurate accounting records during the financial year. He had opening inventory of $6,700. Additional goods were purchased during the year. At the year end he had $5,400 left in inventory. Total sales was $102,360 All sales are made at a mark up on cost of 20%. What is Don Pedro’s gross profit for the year? a. $13,750 b. $17,060 c. $16,540 d. $20,675
Traylor Corporation began the year with three items in beginning inventory, each costing $5. During the year Traylor purchased five more items at a cost of $6 each and then two more items at a cost of $7 each. Traylor sold eight items for $10 each. If Traylor uses a periodic LIFO system, what would be Traylor’s gross profit for this year? 45 $45 $80 $80 $51 $51 $36
AFW inc. reported these figures for its fiscal year (amounts in millions): Net sales $2,100 Cost of goods sold $1,140 Ending inventory $330 Suppose AFW later learns that ending inventory was overstated by $8 million. What are the correct amounts for a) Net sales b) Ending inventory c) Cost of goods sold d) Gross profit
A company begins the year with inventory of $52,000 and ends the year with inventory of $42,000. During the year, the company has four purchases for the following amounts. Purchase on February 17 Purchase on May 6 Purchase on Septenber 8 Purchase on December 4 $207,000 127,000 157,e00 407,000 Required: Calculate cost of goods sold for the year. Beginning inventory Cost of goods available for sale Cost of goods sold
Russell Retail Group begins the year with inventory of $64,000 and ends the year with inventory of $54,000. During the year, the company has four purchases for the following amounts. Purchase on February 17 $219,000 Purchase on May 6 139,000 Purchase on September 8 169,000 Purchase on December 4 419,000 Required: Calculate cost of goods sold for the year. Beginning inventory Cost of goods available for sale Cost of goods sold
During the year, TRC Corporation has the following inventory transactions. Date Jan. 1 Beginning inventory Apr. 7 Purchase Jul.16 Purchase Oct. 6 Purchase Weighted Average Cost Total Beginning Inventory Purchases: Apr 07 Jul 16 Oct 06 Transaction Sales revenue Gross profit For the entire year, the company sells 450 units of inventory for $70 each. 3. Using weighted-average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 2 decimal places and all other answers to the nearest whole number.) Number of Units 60 140 210 120 530 Cost of Goods Available for Sale # of units 60 140 210 120 530 Average Cost per unit Cost of Goods Available for Sale $ $ Unit Cost 3,120 $ 52 54 57 58 7,560 11,970 6.960 29,610 Total Cost $ 3,120 7,560 11,970 6,960 $29,610 Cost of Goods Sold - Weighted Average Cost of units Sold Average Cost of Cost per Unit Goods Sold Ending Inventory - Weighted Average Cost # of units in Ending Inventory…
Russell Retail Group begins the year with inventory of $55000 and ends the year with inventory of $45,000. During the year, the company has four purchases for the following amounts. Purchase on February 17 Purchase on May 6 Purchase on September 8 Purchase on December 4 $210,000 130,000 160,000 410,000 Required: Calculate cost of goods sold for the year.
Case D Tompkins Company reports the following Inventory record for November. Date November 1 November 4 November 7 November 13 November 22 INVENTORY Activity Beginning balance Purchase Sale (@ $53 per unit) Purchase Sale (@ $53 per unit) # of Units 135 320 Cost/Unit $ 18 19 245 525 21 520 Selling, administrative, and depreciation expenses for the month were $15,500. Tompkins's effective tax rate is 40 percent. Required: 1. Calculate the cost of ending Inventory and the cost of goods sold under each of the following methods using periodic Inventory system: 2-a. What is the gross profit percentage under the FIFO method? 2-b. What is net income under the LIFO method? 3. Tompkins applied the lower of cost or market method to value its Inventory for reporting purposes at the end of the month. Assuming Tompkins used the FIFO method and that Inventory had a market replacement value of $17.70 per unit, what would Tompkins report on the balance sheet for Inventory? Complete this question by…
Condensed income statements for Jennifer Corporation are shown below for two years. Sales Cost of Goods Sold Gross Profit Operating Expense Net Income 2021 $90,000 54,000 $36,000 18,000 $18,000 Corrected net income Compute the corrected net income for 2021 and 2022 assuming that the inventory at the end of 2021 was mistakenly overstated by $6,000. 2021 2022 $108,000 64,800 $43,200 18,000 $25,200 S 2022 S