An internal audit of Winslow International Inc discovered that its 2019 and 2020 ending inventory were...

  

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An internal audit of Winslow International Inc discovered that its 2019 and 2020 ending inventory were overstated by $200,000 and $500,000, respectively. Calculate the impact of the error on 2020 cost of goods sold and pre-tax income. If the tax rate is 25%, what is the impact on net income of this error? Adele Inc. began 2020 with the following inventory layers 10,000 units at $15 $150,000 15,000 units at $20 300,000 Total beginning inventory $450,000 During 2020, 30,000 units were purchased for $25 per unit 2020 sales totaled 40,000 units Leaving 15,000 units in ending inventory Required: Calculate COGS for 2020 Determine the amount of before-tax LIFO liquidation profit that the company must report in a disclosure note to it 2020 financial statements. Assume a 40% tax rate. How much would the LIFO liquidation profit be after tax? If the company decided to purchase an additional 10,000 units at $25 per unit at the end of the year, how much income tax currently payable would be saved? An internal audit of Winslow International Inc discovered that its 2019 and 2020 ending inventory were overstated by $200,000 and $500,000, respectively. Calculate the impact of the error on 2020 cost of goods sold and pre-tax income. If the tax rate is 25%, what is the impact on net income of this error? Adele Inc. began 2020 with the following inventory layers 10,000 units at $15 $150,000 15,000 units at $20 300,000 Total beginning inventory $450,000 During 2020, 30,000 units were purchased for $25 per unit 2020 sales totaled 40,000 units Leaving 15,000 units in ending inventory Required: Calculate COGS for 2020 Determine the amount of before-tax LIFO liquidation profit that the company must report in a disclosure note to it 2020 financial statements. Assume a 40% tax rate. How much would the LIFO liquidation profit be after tax? If the company decided to purchase an additional 10,000 units at $25 per unit at the end of the year, how much income tax currently payable would be saved?

Answer rating: 100% (QA)

30000 units were purchased for 25 per unit 30000 x 25 30000 units were purchased for 25 per unit 750... View the full answer