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Ch07 - Student Name Class Problem 07-03 Requirement 1...

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Student Name: Class: Problem 07-03 Requirement 1: DONNER COMPANY Partial Income Statement For the Month Ended January 31, 2011 (a) (b) (c) (d) Average Specific Cost FIFO LIFO Identification Sales revenue* Cost of goods sold** Gross profit Note: See computations below DONNER COMPANY Computations *Sales revenue: Units Cost Revenue **Cost of goods sold: Weighted Specific Units Average FIFO LIFO Identification Beginning inventory Purchases (net)*** Goods available for sale Ending inventory**** Cost of goods sold ***Purchases: Dollar Units Cost Amount January 12 January 26 Totals ****Ending inventory: (a) Weighted-average: Units Amount Beginning inventory Purchases Totals Average cost Ending inventory (b) FIFO: Units Cost Total Ending inventory (c) LIFO: Units Cost Total Ending inventory (d) Specific identification: Units Cost Total Ending inventory Requirement 2: Requirement 3: Requirement 4:

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Given Data P07-03: DONNER COMPANY Transactions Units Amount Inventory, January 1, 2011 500 \$2,500 Purchase, January 12 600 3,600 Purchase, January 26 160 1,280 Sale (370) Sale (250)
Student Name: Class: Problem 07-05 Requirement 1: INVENTORY Comparison Income Statements Prices Rising Prices Falling FIFO LIFO FIFO LIFO Sales revenue (500 units) Cost of goods sold: Beginning inventory (300 units) Purchases (400 units) Goods available for sale Ending inventory (200 units)* Cost of goods sold (500 units) Gross profit Expenses Pretax income Income tax expense (30%) Net income *Inventory computations: Units Cost Total (a) FIFO (b) LIFO (c) FIFO (d) LIFO Requirement 2: Requirement 3: Requirement 4:

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Given Data P07-05: Prices Rising Prices Falling Situation A Situation B Situation C Situation D FIFO LIFO FIFO LIFO Sales revenue \$15,000 \$15,000 \$15,000 \$15,000 Cost of goods sold: Beginning inventory 3,300 ? ? ? Purchases 4,800 ? ? ? Goods available for sale 8,100 ? ? ? Ending inventory 2,400 ? ? ? Cost of goods sold 5,700 ? ? ? Gross profit 9,300 ? ? ? Expenses 4,000 4,000 4,000 4,000 Pretax income 5,300 ? ? ? Income tax expense (30%) 1,590 ? ? ? Net income \$3,710 ? ? ? Data common to all 4 situations: Sales in units 500 Dollar amount of sales \$15,000 Beginning inventory in units 300 Purchases in units 400 Ending inventory in units 200 Operating expenses \$4,000 Per Number Data for Situations A and B (Prices Rising) Unit of Units Total Beginning inventory \$11 300 \$3,300 Purchases \$12 400 4,800 Per Number Data for Situations C and D (Prices Falling) Unit of Units Total Beginning inventory \$12 300 \$3,600 Purchases \$11 400 4,400
Student Name: Class: Problem 07-06 Requirement 1: HARVEY COMPANY Income Statement (LCM basis) For the Year Ended December 31, 2011 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Pretax income Income tax expense Net income Computation of ending inventory on LCM basis: Replacement LCM Item Quantity Original cost Cost (Market) Valuation A X = X = B

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Ch07 - Student Name Class Problem 07-03 Requirement 1...

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