Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost a. Inventory, Beginning 4,000 $ 30 cost per unit For the year: b. Purchase, March 5 10,000 $31 cost per unit c. Purchase, September 19 6,000 units $33 cost per unit d. Sale, April 15 (sold for $75 per unit) 4,400 e. Sale, October 31 (sold for $78 per unit) 9,000 f. Operating expenses (excluding income tax expense), $607,000 ________________________________________ Required: 3. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average method.
Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost a. Inventory, Beginning 4,000 $ 30 cost per unit For the year: b. Purchase, March 5 10,000 $31 cost per unit c. Purchase, September 19 6,000 units $33 cost per unit d. Sale, April 15 (sold for $75 per unit) 4,400 e. Sale, October 31 (sold for $78 per unit) 9,000 f. Operating expenses (excluding income tax expense), $607,000 ________________________________________ Required: 3. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average method.
Chapter1: Financial Statements And Business Decisions
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Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.
Transactions Units Unit Cost
a. Inventory, Beginning 4,000 $ 30 cost per unit
For the year:
b. Purchase, March 5 10,000 $31 cost per unit
c. Purchase, September 19 6,000 units $33 cost per unit
d. Sale, April 15 (sold for $75 per unit) 4,400
e. Sale, October 31 (sold for $78 per unit) 9,000
f. Operating expenses (excluding income tax expense), $607,000
________________________________________
Required:
3. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost.
4. 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average method.
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3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cos.
4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average method.
6. Which inventory costing method minimizes income taxes?
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Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost.
Cost of Ending Cost of Goods
Inventory
References
Sold
FIFO
LIFO
Weighted Average Cost
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Prepare an income statement that shows the FIFO method, LIFO method and weighted average method.
еВook
SCORESBY INC.
Hint
Income Statement
Print
For the Year Ended December 31
Weighted
Average
References
FIFO
LIFO
Sales Revenue
Gross Loss
Income (Loss) from Operations
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