Prepare partial income statements through gross profit, under each of the following cost flow assumptions. (1) Specific
Question:
Prepare partial income statements through gross profit, under each of the following cost flow assumptions.
(1) Specific identification method assuming:
(i) The March 5 sales consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and
(ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 400 liters from March 1; 550 liters from March 3; 2,800 liters from March 10; 1,350 liters from March 20.
(2) FIFO
(3) LIFO
You are provided with the following information. Gobler Inc. uses the periodic method of accounting for its inventory transactions.
March 1 Beginning inventory 2,000 liters at a cost of 58 cents per liter.
March 3 Purchased 2,400 liters at a cost of 62 cents per liter.
March 5 Sold 2,300 liters for $1.05 per liter.
March 10 Purchased 4,150 liters at a cost of 67 cents per liter.
March 20 Purchased 2,550 liters at a cost of 76 cents per liter.
March 30 Sold 5,100 liters for $1.35 per liter.
You are provided with the following information. Gobler Inc. uses the periodic method of accounting for its inventory transactions.
March 1 Beginning inventory 2,000 liters at a cost of 58 cents per liter.
March 3 Purchased 2,400 liters at a cost of 62 cents per liter.
March 5 Sold 2,300 liters for $1.05 per liter.
March 10 Purchased 4,150 liters at a cost of 67 cents per liter.
March 20 Purchased 2,550 liters at a cost of 76 cents per liter.
March 30 Sold 5,100 liters for $1.35 per liter.
Expert Answer:
Sales Sales Date ParticularsUnitsXCent Mar 5 2300 X 105 Mar 30 5100 X 135 Sales ... View the full answer
Accounting Principles
ISBN: 978-1118342190
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
