#### Details of this Paper

##### Cansela Corporation uses a periodic inventory system and the LIFO

Description

solution

Question

Question;Cansela Corporation;uses a periodic inventory system and the LIFO method to value its inventory.;The company began 2013 with inventory of 4,500 units of its only product. The;beginning inventory balance of \$64,000 consisted of the following layers;2,000;units at \$12 per unit;=;\$;24,000;2,500;units at \$16 per unit;=;40,000;\$;64,000;During the three years;2013?2015 the cost of inventory remained constant at \$18 per unit. Unit;purchases and sales during these years were as follows;Purchases;Sales;2013;10,000;11,000;2014;13,000;14,500;2015;12,000;13,000;Required;1.;Calculate cost of;goods sold for 2013, 2014, and 2015.;Cost of Goods Sold;2013;\$;2014;\$;2015;\$;2.;Disregarding income;tax, determine the LIFO liquidation profit or loss, if any, for each of the;three years.(Input all amounts as;positive values.);LIFO;2013;\$;(Click to select);loss;profit;2014;\$;(Click to select);profit;loss;2015;\$;(Click to select);loss;profit;3.;Determine the effects;of LIFO liquidation on cost of goods sold and net income for 2013, 2014, and;2015. Cansela?s effective income tax rate is 40%.(Input all amounts as positive values.);Cost of Goods Sold;Net Income;2013;(Click to select);Increase;Decrease;by;(Click to select);Increase;Decrease;by;2014;(Click to select);Decrease;Increase;by;(Click to select);Decrease;Increase;by;2015;(Click to select);Decrease;Increase;by;(Click to select);Increase;Decrease;by

Paper#39792 | Written in 18-Jul-2015

Price : \$19