Tyler Company has the following information related to purchases and sales of one of its inventory items. Date Description Units Purchased at Cost Units Sold at Retail Sept. 1 Beginning inventory 400 units @ $20 10 Purchase 600 units @ $22 640 units @ $37 700 units at $23 20 Sales 25 Purchase Assume Tyler uses a perpetual inventory system. Required: Calculate ending inventory and cost of goods sold using the FIFO, LIFO, and average cost methods. FIFO LIFO Cost of $ $ goods sold Ending $ $ inventory Avg Cost $ $ 2. Which inventory costing method produces the highest amount for net income?
Tyler Company has the following information related to purchases and sales of one of its inventory items. Date Description Units Purchased at Cost Units Sold at Retail Sept. 1 Beginning inventory 400 units @ $20 10 Purchase 600 units @ $22 640 units @ $37 700 units at $23 20 Sales 25 Purchase Assume Tyler uses a perpetual inventory system. Required: Calculate ending inventory and cost of goods sold using the FIFO, LIFO, and average cost methods. FIFO LIFO Cost of $ $ goods sold Ending $ $ inventory Avg Cost $ $ 2. Which inventory costing method produces the highest amount for net income?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Inventory Costing Methods
Tyler Company has the following information related to purchases and sales of one of its inventory items.
Date
Description
Units Purchased at Cost
Units Sold at Retail
Sept. 1 Beginning inventory
400 units @ $20
10 Purchase
600 units @ $22
20 Sales
25 Purchase
Assume Tyler uses a perpetual inventory system.
640 units @ $37
I
700 units at $23
Required:
Calculate ending inventory and cost of goods sold using the FIFO, LIFO, and average cost methods.
FIFO
Cost of
$
goods sold
Ending
inventory
H
$
LIFO
Avg Cost
$
2. Which inventory costing method produces the highest amount for net income?
3. Which inventory costing method produces the lowest amount for taxes?
4. Which inventory costing method produces the highest amount for ending inventory?
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