Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,900 units of product and incurred $351,500 direct material cost and $194,750 direct labor costs. For financial statement purposes, XYZ capitalized $149,750 indirect costs to inventory. For tax purposes, it had to capitalize $180,750 indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 190 units in inventory. In its second year of operations, XYZ manufactured 3,800 units of product and incurred $722,000 direct material cost and $418.000 direct labor costs. For financial statement purposes, XYZ capitalized $282,000 indirect costs to inventory. For tax purposes, it had to capitalize $336,000 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 380 items in inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. b. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. (Do not round intermediate calculations.) Book Cost of beginning inventory Total cost of units produced Cost of units available for sale Cost of ending inventory Cost of goods sold $ Cost of beginning inventory Total cost of units produced Cost of units available for sale Cost of ending inventory Cost of goods sold THEORIE $ $ 0 $ $ 0$ Required A Required B Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. (Do not round intermediate calculations.) Book 0 $ Tax 0 $ 0 Tax 0 0 Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,900 units of product and incurred $351,500 direct material cost and $194,750 direct labor costs. For financial statement purposes, XYZ capitalized $149,750 indirect costs to inventory. For tax purposes, it had to capitalize $180,750 indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 190 units in inventory. In its second year of operations, XYZ manufactured 3,800 units of product and incurred $722,000 direct material cost and $418.000 direct labor costs. For financial statement purposes, XYZ capitalized $282,000 indirect costs to inventory. For tax purposes, it had to capitalize $336,000 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 380 items in inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. b. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. (Do not round intermediate calculations.) Book Cost of beginning inventory Total cost of units produced Cost of units available for sale Cost of ending inventory Cost of goods sold $ Cost of beginning inventory Total cost of units produced Cost of units available for sale Cost of ending inventory Cost of goods sold THEORIE $ $ 0 $ $ 0$ Required A Required B Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. (Do not round intermediate calculations.) Book 0 $ Tax 0 $ 0 Tax 0 0
Expert Answer:
Answer rating: 100% (QA)
SOLUTION a FIFO Costing Convention To calculate the cost of goods sold COGS for book purposes and tax purposes using the FIFO costing convention we need to allocate the costs of goods sold and ending ... View the full answer
Related Book For
Principles Of Taxation For Business And Investment Planning 2019 Edition
ISBN: 9781260161472
22nd Edition
Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan
Posted Date:
Students also viewed these accounting questions
-
Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,000 units of product and incurred $200,000 direct material cost and...
-
Refer to the facts in problem 10. In its second year of operations, XYZ manufactured 2,000 units of product and incurred $410,000 direct material cost and $275,000 direct labor costs. For financial...
-
In its first year of operations, Lima Company manufactured 1,000 widgets, incurring direct materials and labor costs of $227,000. For book purposes, Lima capitalized $260,000 of indirect...
-
Find the indefinite integrals (a) sin 3x cos 5x (b) cos 7x cos 5x (c) sin 2 x (d) cos 2 x (e) cosh 2 x (f) sinh(5x + 1)
-
The gravitational force exerted by Earth on a unit mass at a distance r from the center of the planet is where. M is the mass of Earth, R is its radius, and G is the gravitational constant. Is F a...
-
A pistoncylinder device contains an ideal gas. The gas undergoes two successive cooling processes by rejecting heat to the surroundings. First the gas is cooled at constant pressure until T2 = 34 T1....
-
Which parts of the accounting equation does a sale on account affect? a. Accounts receivable and Accounts payable b. Accounts receivable and Retained earnings c. Accounts payable and Retained...
-
You own a nonunion company with 93 nonexempt employees. All of these employees pack books into boxes for shipment to customers throughout the United States. Because of wide differences in...
-
Last year, the State Board of Education in the State of Jefferson made some changes in the prescribed history curriculum in its public schools. In the "New History Curriculum," all American history...
-
A long copper cylinder 0.6 m in diameter and initially at a uniform temperature of 38?C is placed in a water bath at 93?C. Assuming that the heat transfer coefficient between the copper and the water...
-
Accounting type Question: In asset turnover ratio we see - A . How much property is to be sold B . Relationship between property and net sales C . Sales value of the property D . Market value of the...
-
High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company s job - order costing system uses departmental predetermined overhead rates to apply manufacturing...
-
An object weighs 5 8 3 N in air. A force of 1 3 2 N is needed to push the object down so that it is completely submerged under water ( water = 1 0 0 0 kg / m deg . What is the average density of the...
-
Simplify the compound fractional expression. y # 1 x2 1 y2
-
A stove is worth $1700. You can pay $1700 on the date of purchase or $1700 plus an administration fee of $55 5 months from the purchase date. What is the implied simple interest rate? Answer: %
-
Accounts Payable had a normal beginning balance of $1,200. During the period, there were debit postings of $300 and credit postings of $800. What was the ending balance?
-
On January 13, at the end of the second weekly pay period of the year, a company's payroll register showed that its 26 employees had earned $20,570 of sales salaries and $6,630 of office salaries....
-
One Way Cellular accountants have assembled the following data for the year ended September 30, 2014: Prepare the operating activities section using the indirect method for One Way Cellulars...
-
Using a 21 percent rate, compute the deferred tax asset or deferred tax liability (if any) resulting from the following: a. A transaction resulting in a $31,000 temporary excess of book income over...
-
Extronic, a calendar year, accrual basis corporation, reported a $41,900 liability for accrued 2017 state income tax on its December 31, 2017, balance sheet. Extronic made the following state income...
-
Mrs. Carr made the following interest payments. Determine the extent to which she can deduct each payment on her Form 1040. a. $21,000 on a $280,000 mortgage incurred to construct (and secured by)...
-
The rotor shown in Fig. 9.44 (a) is balanced temporarily in a balancing machine by adding the masses \(m_{1}=m_{2}=90 \mathrm{~g}\) in the plane \(A\) and \(m_{3}=m_{4}=90 \mathrm{~g}\) in the plane...
-
A turbine rotor is run at the natural frequency of the system. A stroboscope indicates that the maximum displacement of the rotor occurs at an angle \(229^{\circ}\) in the direction of rotation. At...
-
The cylinders of a four-cylinder in-line engine are placed at intervals of \(300 \mathrm{~mm}\) in the axial direction. The cranks have the same length, \(100 \mathrm{~mm}\), and their angular...
Study smarter with the SolutionInn App