Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies its...
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Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions a. Inventory, Beginning For the year: b. Purchase, March 51 c. Purchase, September 19 d. Sale, April 15 (sold for $73 per unit) Units 1,500 7,500 3,500 2,200 6,500 Unit Cost $ 28 29 31 e. Sale, October 31 (sold for $76 per unit) f. Operating expenses (excluding income tax expense), $398,000 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average metho 6. Which inventory costing method minimizes income taxes? Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions a. Inventory, Beginning For the year: b. Purchase, March 51 c. Purchase, September 19 d. Sale, April 15 (sold for $73 per unit) Units 1,500 7,500 3,500 2,200 6,500 Unit Cost $ 28 29 31 e. Sale, October 31 (sold for $76 per unit) f. Operating expenses (excluding income tax expense), $398,000 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average metho 6. Which inventory costing method minimizes income taxes?
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Answer rating: 100% (QA)
1 Calculate the number and cost of goods available for sale Beginning Inventory 1500 units Purchases March 31 7500 units September 19 3500 units Total Units Available for Sale 1500 7500 3500 12500 uni... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
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