FIFOLIFO3 - A 1 2 B D 9 10 11 12 13 14 15 16 17 18 Purchase...

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Yongmei Cao FIFOLIFO Inventory Cost Flow Assumptions Data Section Specific FIFO LIFO Purchase Unit Unit Total Units Units Units Date Quantity Cost Cost Sold Sold Sold Beginning Balance 200 $400 $80,000 200 200 100 Mar 7 100 $440 $44,000 50 100 100 May 13 50 480 24,000 25 50 50 Aug 28 200 520 104,000 200 150 200 Nov 20 150 250 37,500 125 100 150 Total purchased 500 209,500 Total available 700 $289,500 Sales 600 600 600 600 Ending balance 100 these totals must agree with cell B17 Calculations Specific ID FIFO LIFO Average Cost of goods sold $237,250 $226,000 $209,500 $248,143 Ending inventory cost 52,250 63,500 80,000 41,357 Total goods available $289,500 $289,500 $289,500 $289,500 these totals must agree with cell D16 Answer Section Income Statement Specific ID FIFO LIFO Average Sales $384,000 $384,000 $384,000 $384,000 Cost of goods sold 237,250 226,000 209,500 248,143 Gross profit $146,750 $158,000 $174,500 $135,857 Taxes (40%) 58,700 63,200 69,800 54,343 Net income $88,050 $94,800 $104,700 $81,514 Cash Flow Analysis Specific ID FIFO LIFO Average Sales $384,000 $384,000 $384,000 $384,000 Less inventory replacement (209,500) (209,500) (209,500) (209,500) $174,500 $174,500 $174,500 $174,500 Less taxes (58,700) (63,200) (69,800) (54,343) Less dividends (44,025) (47,400) (52,350) (40,757) Change in cash account $71,775 $63,900 $52,350 $79,400 A B C D E F G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47
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Yongmei Cao FIFOLIFO Inventory Cost Flow Assumptions Data Section Specific FIFO LIFO Purchase Unit Unit Total Units Units Units Date Quantity Cost Cost Sold Sold Sold Beginning Balance 200 $400 $80,000 200 200 Mar 7 100 $440 $44,000 50 100 May 13 50 480 24,000 50 50 Aug 28 200 520 104,000 200 150 200 Nov 20 250 250 62,500 50 250 Total purchased 600 234,500 Total available 800 $314,500 Sales 500 500 500 500 Ending balance 300 these totals must agree with cell B17 Calculations Specific ID FIFO LIFO Average Cost of goods sold $218,500 $226,000 $190,500 $196,563 Ending inventory cost 96,000 88,500 124,000 117,938 Total goods available $314,500 $314,500 $314,500 $314,500 these totals must agree with cell D16 Answer Section Income Statement Specific ID FIFO LIFO Average Sales $320,000 $320,000 $320,000 $320,000 Cost of goods sold 218,500 226,000 190,500 196,563 Gross profit $101,500 $94,000 $129,500 $123,438 Taxes (40%) 40,600 37,600 51,800 49,375 Net income $60,900 $56,400 $77,700 $74,063 Cash Flow Analysis Specific ID FIFO LIFO Average Sales $320,000 $320,000 $320,000 $320,000 Less inventory replacement (234,500) (234,500) (234,500) (234,500) $85,500 $85,500 $85,500 $85,500 Less taxes (40,600) (37,600) (51,800) (49,375) Less dividends (30,450) (28,200) (38,850) (37,031) Change in cash account $14,450 $19,700 ($5,150) ($906) 6. a) LIFO could produce the most net income. b) FIFO could produce the least net income. c) Average cost could produce the 2nd most net income.
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