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4.Compute gross profit earned by the company for each of the four costing methods. For specificidentification, the March 9 sale consisted of 140 units from beginning inventory and 270 units from theMarch 5 purchase; the March 29 sale consisted of 120 units from the March 18 purchase and 160units from the March 25 purchase. (Round your per unit costs to 3 decimal places and inventorybalances and final answer to the nearest dollar amount. Omit the "$" sign in your response.)Gross profitFIFO$ 24,050LIFO$ 22,090Weighted average$ 23,227 ± 2Specific identification$ 22,480rev: 10_14_2011Explanation:FIFOLIFOWeightedAverageSpecificIdentificationSales*$64,210 $64,210 $64,210 $ 64,210 Less: Cost of goods sold40,160 42,120 40,983 41,730 Gross profit$24,050 $22,090 $23,227 $ 22,480 *Sales = (410 units × $89.00) + (280 units × $99.00) = $64,210Assignment Print View6 of 138/17/2014 8:45 PM
award:0 out of2.00 pointsProblem 5-6AA Income comparisons and cost flows-periodic L.O. A1, P3Botch Corp. sold 5,330 units of its product at $46.70 per unit in year 2011 and incurred operatingexpenses of $7.70 per unit in selling the units. It began the year with 770 units in inventory and madesuccessive purchases of its product as follows.Jan.1 Beginning inventory770 units @ $19.70 per unitFeb. 20 Purchase1,670 units @ $20.70 per unitMay 16 Purchase870 units @ $21.70 per unitOct.3 Purchase570 units @ $22.70 per unitDec. 11 Purchase3,470 units @ $23.70 per unitTotal7,350 units Required:1.Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, andweighted average which includes detailed cost of goods sold section as part of each statement. Thecompany uses a periodic inventory system, and its income tax rate is 40%. (Input all amounts aspositive values. Cost of goods sold is the difference of Cost of goods available for sale andending inventory.Round your per unit costs to 3 decimal places. Round your final answers tothe nearest dollar amount.Omit the "$" sign in your response.)BOTCH CORP.Income Statements Comparing FIFO, LIFO, and Weighted AverageFor Year Ended December 31, 2011FIFOLIFOWeightedAveragen/r$ n/r$ n/r$ n/rCost of goods soldn/rn/rn/rn/rn/rn/rn/rn/rn/rn/rn/rn/rn/rn/rn/rn/rCost of goods soldn/rn/rn/rn/rn/rn/rn/rExpensesn/rn/rn/rn/rn/rn/rn/rn/rn/rn/rn/rn/r$ n/r$ n/r$ n/rWorksheetLearning Objective: 05-A1 Analyze theeffects of inventory methods for bothfinancial and tax reporting.Problem 5-6AA Income comparisonsand cost flows-periodic L.O. A1, P3Learning Objective: 05-P3 Appendix5A-Compute inventory in a periodicsystem using the methods of specificidentification, FIFO, LIFO, and weightedaverage.Assignment Print View7 of 138/17/2014 8:45 PM