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Unformatted text preview: 4-20Goods Available for SaleBeginning inventory75First Purchase100Second Purchase175Goods available for sale350a. FIFOCost of Goods SoldUnitsFrom beginning inventory75From first purchase100From second purchase125Total Units Sold300Ending Inventory = Goods available for sale - cost of gooEnding Inventory = $33,450 -28,450 = $5,000b. LIFOCost of Goods SoldUnitsFrom second purchase175From first purchase100From beginning inventory25Total Units Sold300Ending Inventory = Goods available for sale - cost of gooEnding Inventory = $33,450 -28,950 = $4,500c. Weighted AverageGoods available for sale / Total Units = Cost per Unit$33,450 / 350 = $95.57Cost of Goods Sold 300 units @ $95.57 = $28,671Ending Inventory 50 units @ $95.57 = $ 4,778.50Income =Income from FIFO$7,550 =Income from LIFO$7,050 =Income from Weighted average$7,329 =Taxes from FIFO$2,265 Taxes from LIFO$2,115 Taxes from Weighted Average$2,199 Financial Statements from FIFO2010 Income StatementSales revenue$51,000 Cost of goods sold$(28,450)Gross margin$22,550 Less: Operating exp....
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This note was uploaded on 04/20/2011 for the course ACC 202 taught by Professor Alao during the Spring '10 term at Ashford University.
- Spring '10
- Managerial Accounting