Farmer's Cart is a local produce shop that uses the periodic inventory system. Its fiscal year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Farmer's Cart is a local produce shop that uses the periodic inventory system. Its fiscal year end is December 31. It began the fiscal year with 700 boxes of berries at a unit cost of $2/box. During the quarter it made the following purchases: • January: 3,200 boxes @ $2.50/box February: 4,800 boxes @ $2.75/box March: 2,500 boxes @ $2.95/box 700 3a00 e 4800 Morch 2500 @ Beg Inv. Jan Feb During the year, Farmer's Cart sold 10,400 boxes of berries for $5 each. 1. Complete the following partial financial statements using the FIFO, LIFO, and Average Cost methods. You may round your final answers under Average Cost to the nearest $1. (Show your work on a separate page). FIFO LIFO Average Cost Income Statement Quarter Ending 3/31/2022 5a000 J52000 # 28325 27834. 23675 Net Sales COGS 27615 24385 24166, 07113 Gross Profit Balance Sheet 3/31/2022 1650 D141 041 Inventoni Assume Farmer's Cart has an income tax rate of 21% and Farmer's Cart uses LIFO, what is the tax savings generated by the additional purchase of 1,500 boxes of berries for $3.25/box? (Assume same quantity was sold during the quarter, i.e. 10,400 boxes). Show your work in the space below and circle your final answer. Farmer's Cart is a local produce shop that uses the periodic inventory system. Its fiscal year end is December 31. It began the fiscal year with 700 boxes of berries at a unit cost of $2/box. During the quarter it made the following purchases: • January: 3,200 boxes @ $2.50/box February: 4,800 boxes @ $2.75/box March: 2,500 boxes @ $2.95/box 700 3a00 e 4800 Morch 2500 @ Beg Inv. Jan Feb During the year, Farmer's Cart sold 10,400 boxes of berries for $5 each. 1. Complete the following partial financial statements using the FIFO, LIFO, and Average Cost methods. You may round your final answers under Average Cost to the nearest $1. (Show your work on a separate page). FIFO LIFO Average Cost Income Statement Quarter Ending 3/31/2022 5a000 J52000 # 28325 27834. 23675 Net Sales COGS 27615 24385 24166, 07113 Gross Profit Balance Sheet 3/31/2022 1650 D141 041 Inventoni Assume Farmer's Cart has an income tax rate of 21% and Farmer's Cart uses LIFO, what is the tax savings generated by the additional purchase of 1,500 boxes of berries for $3.25/box? (Assume same quantity was sold during the quarter, i.e. 10,400 boxes). Show your work in the space below and circle your final answer.
Expert Answer:
Answer rating: 100% (QA)
FIFO Beginning Inventory Purchases Cost of Goods Sold Ending Inventory Quantity Cost per unit Value ... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
Posted Date:
Students also viewed these accounting questions
-
A company that uses the periodic inventory system makes the following errors: 1. It omits a purchase on credit from the Purchases account and the ending inventory . 2. It omits a purchase on credit...
-
Halton Prosthetics uses the periodic inventory system and had the following transactions: a. Purchase of inventory on account, $2,000 b. Sale of inventory on account for $3,100 c. Closing entries:...
-
Lauras Clothing Co. uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Lauras records for the year 2009: beginning...
-
You are the president of a new, capital-rich firm and you must decide on your firm's targeting approach. Three large subgroups exist in your market that have never had their unique needs served. If...
-
Ataway Company has severe financial difficulties and is considering filing a bankruptcy petition. At this time, it has the following assets (stated at net realizable value) and liabilities: Assets...
-
The Citrix Fund has invested in a portfolio of government bonds that has a current market value of $44.8 million. The duration of this portfolio of bonds is 13.5 years. The fund has borrowed to...
-
AutoAnswer, Inc., a manufacturer of telephone answering machines, uses a factory overhead applied rate to charge overhead costs to its manufactured products. The company manager estimates that...
-
Galloway Company is a small editorial services company owned and operated by Fran Driggs. On July 31, 2012, the end of the current year, Galloway Company?s accounting clerk prepared the unadjusted...
-
For each example, choose the best category to demonstrate how producing a service is different than producing a good. Determine if each question below is influenced by: types of resources used,...
-
Reconsider the Skycell data in Exercise 1. Assume that the plant has 1,250 employees and a no-layoff policy. Overtime is limited to at most 20 hours per employee per month. Also assume no...
-
Task Network Segments A & B Devices and justification. 1. Server Name & Role - Justify why this segment is appropriate from a security standpoint. can begin with a succinct explanation of the role...
-
2 Write The expression u + 23 u+ 1 in factored form
-
Campbell Clothing produces men's ties. The following budgeted and actual amounts are for 2013: Budget at 5.000 Units Units Sales Revenue $200,000 Actual Amounts at 5,800 $229,100 Cost Direct...
-
For the following lease, determine the amount the right-of-use (ROU) asset will be initially measured at. Round your answer to the nearest whole dollar. Annual payment (due at end of year) $23,000...
-
3. Write Matlab codes to generate two Gaussian random variables (X, X2) with the following moments: E[X]-0, E[X]-0, E[X]=a, E[X]=b, and E[XX]=c. 1) Generate N=10, 100, 1000, 10000, and 100000 pairs...
-
what does the number (1) (12) (11) (9) etc. means for a spreadsheet for the statement of cash flows? Balance 12/31/24 Satellite Corporation Worksheet for Preparation of Statement of Cash Flows for...
-
Problem 4 Passwords consist of 6 symbols which can be of three types, i.e. letters, special symbols or digits. Assume that there are 30 letters, 20 special symbols and 10 digits. Assume that all such...
-
You continue to work in the corporate office for a nationwide convenience store franchise that operates nearly 10,000 stores. The per- store daily customer count (i.e., the mean number of customers...
-
Lena Kay and Kathy Lauder have a patent on a new line of cosmetics. They need additional capital to market the products, and they plan to incorporate the business. They are considering the capital...
-
The accounting equation includes three basic types of accounts: assets, liabilities, and stockholders equity. In turn, stockholders equity holds the following types: common stock, retained earnings,...
-
You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to draw $235,000 per year for the next 40 years (based on family history, you...
-
For a given supply of land capable of growing cotton, an increase in the demand for cotton will _________ rents.
-
An increase in the demand for land will _________ the quantity supplied and _________ the price of land.
-
The supply of land is perfectly _________.
Study smarter with the SolutionInn App