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Problem 5-33_Clear Photography, Inc_Inventory Valuation




Question;Problem 5-33 Effect of;different inventory cost flow methods on financial statements;The;accounting records of Clear Photography, Inc., reflected the following balances;as of;January;1, 2012;Cash;$18,000;Beginning;inventory 13,500 (150 units @ $90);Common;stock 15,000;Retained;earnings 16,500;The;following five transactions occurred in 2012;1.;First purchase (cash) 120 units @ $92;2.;Second purchase (cash) 200 units @ $100;3.;Sales (all cash) 300 units @ $185;4.;Paid $15,000 cash for operating expenses.;5.;Paid cash for income tax at the rate of 40 percent of income before taxes.;Required;a.;Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost;flow, (2) LIFO;cost;flow, and (3) weighted-average cost flow.


Paper#37350 | Written in 18-Jul-2015

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