Description of this paper

Compute the cost of goods sold and ending inventory, assuming FIFO cost flow,

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solution


Question

Cash $19,000,Beginning inventory 6,750 (75 units @ $90),Common stock, 7,500,Retained earnings 18,250 First purchase (cash) 100 units @ $92 Second purchase (cash) 175 units @ $100 Sales (all cash) 300 units @ $170 Paid $15,000 cash for operating expenses. Paid cash for income tax at the rate of 30 percent of income before taxes. Compute the cost of goods sold and ending inventory, assuming FIFO cost flow, LIFO cost flow, and weighted average cost flow. Use a vertical model to prepare the 2010 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, weighted average.

 

Paper#25334 | Written in 18-Jul-2015

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