Stockton Corporation uses a perpetual inventory system. It entered into the following purchases and sales transactions...
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Stockton Corporation uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Units Acquired at Cost Units Sold at Retail Date Activities Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar.18 Purchase Mar.25 Purchase Mar.29 Sales Mar. 1 230 units @ $53.60 per unit 290 units $58.60 per unit 390 units @ $88.60 per unit 150 units 280 units @ $63.60 per unit @ $65.60 per unit 260 units @ $98.60 per unit Totals 950 units 650 units REQUIRED: 1. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 105 units from beginning inventory and 215 units from the March 5 purcha: the March 29 sale consisted of 45 units from the March 18 purchase and 65 units from th March 25 purchase. 2. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $3,600, and that the applicable income tax rate is 39%. Stockton Corporation uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Units Acquired at Cost Units Sold at Retail Date Activities Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar.18 Purchase Mar.25 Purchase Mar.29 Sales Mar. 1 230 units @ $53.60 per unit 290 units $58.60 per unit 390 units @ $88.60 per unit 150 units 280 units @ $63.60 per unit @ $65.60 per unit 260 units @ $98.60 per unit Totals 950 units 650 units REQUIRED: 1. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 105 units from beginning inventory and 215 units from the March 5 purcha: the March 29 sale consisted of 45 units from the March 18 purchase and 65 units from th March 25 purchase. 2. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $3,600, and that the applicable income tax rate is 39%.
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Ans Q1 a FIFO Method Perpetual Inventory System Date Receipts Issues Balance Unit Rate Amount Unit Rate Amount Unit Rate Amount March1 230 5360 12328 ... View the full answer
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