Emily Company uses a periodic inventory system. At the end of the annual accounting period, December...
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Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Unit Cost Units Inventory, December 31, prior year For the current year: Purchase, Apríl 11 Purchase, June 1 Sales ($55 each) Operating expenses (excluding income tax expense) 2,880 $10 8,860 7,900 10,870 11 16 $187,000 Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A Case B FIFO LIFO Sales revenue 597,850 $ 597,850 Cost of goods sold: Beginning inventory 28,800 $ 28,800 Purchases 223,860 223,860 Goods available for sale 252,660 252,660 Ending inventory Cost of goods sold Gross profit Operating expenses 187,000 187,000 Pretax income Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Unit Cost Units Inventory, December 31, prior year For the current year: Purchase, Apríl 11 Purchase, June 1 Sales ($55 each) Operating expenses (excluding income tax expense) 2,880 $10 8,860 7,900 10,870 11 16 $187,000 Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A Case B FIFO LIFO Sales revenue 597,850 $ 597,850 Cost of goods sold: Beginning inventory 28,800 $ 28,800 Purchases 223,860 223,860 Goods available for sale 252,660 252,660 Ending inventory Cost of goods sold Gross profit Operating expenses 187,000 187,000 Pretax income
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Answer rating: 100% (QA)
Solution INCOME STATEMENT FIFO LIFO Sales Revenue 597850 597850 Cost of goods sold Beginning Invento... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
Posted Date:
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