Question: Please be clear with the answer. Provide Table format 7-67 Comparison of Inventory Methods (Alternates are 7-56 and 7-69.) Dell Computer Company produces computers. The

Please be clear with the answer. Provide Table format

Please be clear with the answer. Provide Table format 7-67 Comparison of

7-67 Comparison of Inventory Methods (Alternates are 7-56 and 7-69.) Dell Computer Company produces computers. The following data and descriptions are from the company's annual report ( $ in millions): Assume that Dell uses the periodic inventory system. Suppose a division of Dell had the accompanying data concerning the purchase and resale of computers ( $ are not in millions): 1. For these computers only, prepare a tabulation of the cost of goods sold section of the income statement for the year ended February 3, 2012. Support your computations. Show your tabulation for four different inventory methods: (a) FIFO, (b) LIFO, (c) average cost known as weighted-average for periodic inventory systems, and (d) specific identification. For requirement (d), assume that the purchase of February 20 was identified with the sale of March 17. Also assume that the sale of November 7 included the sale of half of the units in beginning inventory and the remainder from the purchase of June 25. 2. By how much would income taxes differ if Dell used (a) LIFO instead of FIFO for this inventory item, and (b) LIFO instead of weighted average? Assume a 40% tax rate

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!