At the end of January of the current year, the records of Donner Company showed the...

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At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $16 per unit: Transactions Units Amount Inventory, January 1 500 $2,365 Purchase, January 12 600 3,600 Purchase, January 26 160 1,280 Sale Sale (370) (250) Required: 1a. Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 1b. Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (c) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 2a. Between FIFO and LIFO, which method would result in the higher pretax income? 2b. Between FIFO and LIFO, which would result in the higher EPS? 3. Between FIFO and LIFO, which method would result in the lower income tax expense? Assume a 20 percent average tax rate. 4. Between FIFO and LIFO, which method would produce the more favorable cash flow? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 2B Required 31 Required 4 Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning Inventory and the second sale was selected from the January 12 purchase. Average Cost Beginning inventory Purchases: January 12 January 26 Total FIFO Beginning inventory Cost of Good Available for Sale Cost of Goods Sold Number of Units Cost per Unit Cost of Goods Available for Cost of Number of Units Sold Cost per Goods Unit Sold Sale 500 $ 2,365 600 $ 3,600 160 $ 1,280 1,260 $ 16.00 $ 7,245 620 $ 16.00 $ 9,920 Cost of Goods Available for Sale Cost of Goods Sold Cost of Cost of Number of Units Cost per Unit Goods Available for Sale Number of Units Sold Cost per Goods Unit Sold 500 $ 4.73 $ 2,365 $ 0 Purchases: January 12 600 6.00 $ 3,600 January 26 160 8.00 $ 1,280 Total 1,260 $ 7,245 0 $ 0 1 LIFO Beginning inventory Cost of Goods Available for Sale Cost of Goods Sold Number of Units Cost per Unit Cost of Goods Available for Cost of Number of Cost per Goods Units Sold Unit Sold Sale $ 500 $ 4.73 $ 2,365 500 $ 4.73 2,365.00 Purchases: January 12 600 6.00 $ 3,600.00 120 6.00 $ 720 January 26 160 8.00 1,280.00 Total 1,260 $ 7,245 620 $ 3,085 Specific Identification Beginning inventory Cost of Goods Available for Sale Cost of Goods Sold Cost of Number of Units Goods Number of Cost per Unit Available for Units Sold Cost per Unit Cost of Goods Sold Sale 500 $ 4.73 $ 2,365 Purchases: January 12 600 6.00 $ 3,600 January 26 160 8.00 $ 1,280 Total 1,260 7,245 0 0 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3 Required 4 Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (c) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. DONNER COMPANY Partial Income Statement For the Month Ended January 31, Current Year (a) (b) (c) Average Cost FIFO LIFO (d) Specific Identification Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3 Required 4 Between FIFO and LIFO, which method would result in the lower Required 3 expense? Assume a 20 percent average tax rate. Method LIFO Tax Savings At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $16 per unit: Transactions Units Amount Inventory, January 1 500 $2,365 Purchase, January 12 600 3,600 Purchase, January 26 160 1,280 Sale Sale (370) (250) Required: 1a. Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 1b. Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (c) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 2a. Between FIFO and LIFO, which method would result in the higher pretax income? 2b. Between FIFO and LIFO, which would result in the higher EPS? 3. Between FIFO and LIFO, which method would result in the lower income tax expense? Assume a 20 percent average tax rate. 4. Between FIFO and LIFO, which method would produce the more favorable cash flow? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 2B Required 31 Required 4 Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning Inventory and the second sale was selected from the January 12 purchase. Average Cost Beginning inventory Purchases: January 12 January 26 Total FIFO Beginning inventory Cost of Good Available for Sale Cost of Goods Sold Number of Units Cost per Unit Cost of Goods Available for Cost of Number of Units Sold Cost per Goods Unit Sold Sale 500 $ 2,365 600 $ 3,600 160 $ 1,280 1,260 $ 16.00 $ 7,245 620 $ 16.00 $ 9,920 Cost of Goods Available for Sale Cost of Goods Sold Cost of Cost of Number of Units Cost per Unit Goods Available for Sale Number of Units Sold Cost per Goods Unit Sold 500 $ 4.73 $ 2,365 $ 0 Purchases: January 12 600 6.00 $ 3,600 January 26 160 8.00 $ 1,280 Total 1,260 $ 7,245 0 $ 0 1 LIFO Beginning inventory Cost of Goods Available for Sale Cost of Goods Sold Number of Units Cost per Unit Cost of Goods Available for Cost of Number of Cost per Goods Units Sold Unit Sold Sale $ 500 $ 4.73 $ 2,365 500 $ 4.73 2,365.00 Purchases: January 12 600 6.00 $ 3,600.00 120 6.00 $ 720 January 26 160 8.00 1,280.00 Total 1,260 $ 7,245 620 $ 3,085 Specific Identification Beginning inventory Cost of Goods Available for Sale Cost of Goods Sold Cost of Number of Units Goods Number of Cost per Unit Available for Units Sold Cost per Unit Cost of Goods Sold Sale 500 $ 4.73 $ 2,365 Purchases: January 12 600 6.00 $ 3,600 January 26 160 8.00 $ 1,280 Total 1,260 7,245 0 0 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3 Required 4 Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (c) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. DONNER COMPANY Partial Income Statement For the Month Ended January 31, Current Year (a) (b) (c) Average Cost FIFO LIFO (d) Specific Identification Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3 Required 4 Between FIFO and LIFO, which method would result in the lower Required 3 expense? Assume a 20 percent average tax rate. Method LIFO Tax Savings