Question: could someone help me with the parts that are wrong? thanks! Lunar Company uses a perpetual inventory system. The company's accounting records provided the following

could someone help me with the parts that are wrong? thanks!  could someone help me with the parts that are wrong? thanks!
Lunar Company uses a perpetual inventory system. The company's accounting records provided
the following information for Product 2: Units 3,400 Unit Cost $ 11

Lunar Company uses a perpetual inventory system. The company's accounting records provided the following information for Product 2: Units 3,400 Unit Cost $ 11 Transactions a. Inventory, December 31, 2016 For the year 2017: b. Purchase, April 11 c. Sale, May 1 ($29 each) d. Purchase, June 1 e. Sale, July 3 ($29 each) f. Operating expenses (excluding income tax expense). $85,400 9,400 5,400 8,400 6,400 Required: 1. Prepare a statement of earnings for 2017, through pretax earnings, showing the detailed computation of cost of sales for two cases: a. Case A-FIFO b. Case B-Weighted average (Round intermediate calculations to 2 decimal place.) An X Answer is complete but not entirely correct. LUNAR COMPANY Statement of Earnings (Partial) For the Year Ended December 31, 2017 Case A Case B FIFO Fo W eighted Average Sales revenue $ 342,200 $ 342,200 Cost of sales: Beginning inventory 37,400 37,400 Purchases 185,400 185,400 Cost of goods available for sale 222,800 222,800 Ending inventory 109, 800 0 Cost of sales 113,000 222,800 Gross profit 229,200 119,400 Expenses 85,400 Pretax earnings $ 143,800 $ 34,000 2. Calculate the pretax earnings and the ending inventory amounts between the two cases. Answer is complete but not entirely correct. Comparison of Amounts Case A Case B Weighted Average Pretax earnings $ 143,800 $ 0X Difference 0 X Ending Inventory 109,800 Difference 0% FIFO FIFO Weighted 3. Which inventory costing method may be preferred for income tax purposes? FIFO o Weighted Average 4. Prepare journal entries to record transactions (b) through (e), as well as the cost of sales at December 31, 2017, assuming that Lunar uses FIFO for inventory costing. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) * Answer is not complete. No Transaction General Journal Credit Debit 84,600 Inventory Trade payables 84,600 Trade receivables 156,600 Sales 156,600 c-2 55,400 Cost of sales Inventory 55,400 100.800 Inventory Trade payables 100,800 Trade receivables Sales 185,600 185,600 e-2 Cost of sales Inventory Operating expenses Cash and/or Accrued liabilities

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