Question

Burton Corporation commenced retailing operations on January 1, 2011. Purchases of merchandise inventory during
2011 and 2012 appear next:


Burton Corporation sold 1,000 units during 2011 and 1,500 units during 2012.
a. Calculate the cost of goods sold for 2011 using a FIFO cost-flow assumption.
b. Calculate the cost of goods sold for 2011 using a LIFO cost-flow assumption.
c. Calculate the cost of goods sold for 2011 using a weighted-average cost-flow assumption.
d. Calculate the cost of goods sold for 2012 using a FIFO cost-flow assumption.
e. Calculate the cost of goods sold for 2012 using a LIFO cost-flow assumption.
f. Calculate the cost of goods sold for 2012 using a weighted-average cost-flow assumption.
g. Will FIFO or LIFO result in reporting the larger net income for 2011? Explain.
h. Will FIFO or LIFO result in reporting the larger net income for 2012?Explain.


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  • CreatedMarch 04, 2014
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