Please answer part 3 Units 1,500 $31 Transactions a. Inventory, Beginning For the year: b. Purchase, March 5 c. Purchase, September 19 d. Sale, April 15 (sold for $76 per unit) e. Sale, October 31 (sold for $79 per unit) f. Operating expenses (excluding income tax expense), $398,000 Cost 7,500 3,500 2,200 6,500 32 34 Required: 1. Calculate the number and cost of goods avallable for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes? Required 1 Required 2 Required 3 Required 4 Required 6 Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. Cost of Ending Cost of Goods Inventory Sold FIFO LIFO Weighted Average Cost < Required 2 Required 4 >
Please answer part 3 Units 1,500 $31 Transactions a. Inventory, Beginning For the year: b. Purchase, March 5 c. Purchase, September 19 d. Sale, April 15 (sold for $76 per unit) e. Sale, October 31 (sold for $79 per unit) f. Operating expenses (excluding income tax expense), $398,000 Cost 7,500 3,500 2,200 6,500 32 34 Required: 1. Calculate the number and cost of goods avallable for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes? Required 1 Required 2 Required 3 Required 4 Required 6 Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. Cost of Ending Cost of Goods Inventory Sold FIFO LIFO Weighted Average Cost < Required 2 Required 4 >
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.4.4P: Inventory by three cost flow methods Details regarding the inventory of appliances on January 1,...
Related questions
Question
![Please answer part 3
Units
1,500
Transactions
a. Inventory, Beginning
For the year:
b. Purchase, March 5
c. Purchase, September 19
d. Sale, April 15 (sold for $76 per unit)
e. Sale, October 31 (sold for $79 per unit)
f. Operating expenses (excluding income tax expense), $398,000
Cost
$31
7,500
3,500
2,200
6,500
32
34
Required:
1. Calculate the number and cost of goods avallable for sale.
2. Calculate the number of units in ending inventory.
3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost
4. Prepare an income statement that shows the FiFO method, LIFO method and weighted average method.
6. Which inventory costing method minimizes income taxes?
Required 1
Required 2
Required 3
Required 4
Required 6
Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost.
Cost of Ending Cost of Goods
Inventory
Sold
FIFO
LIFO
Weighted Average Cost
< Required 2
Required 4 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81afa145-b900-41b5-9640-989db8b18dcc%2F0b1cce54-9648-43a9-a3e2-fe212d36e469%2F5ccwbna_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Please answer part 3
Units
1,500
Transactions
a. Inventory, Beginning
For the year:
b. Purchase, March 5
c. Purchase, September 19
d. Sale, April 15 (sold for $76 per unit)
e. Sale, October 31 (sold for $79 per unit)
f. Operating expenses (excluding income tax expense), $398,000
Cost
$31
7,500
3,500
2,200
6,500
32
34
Required:
1. Calculate the number and cost of goods avallable for sale.
2. Calculate the number of units in ending inventory.
3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost
4. Prepare an income statement that shows the FiFO method, LIFO method and weighted average method.
6. Which inventory costing method minimizes income taxes?
Required 1
Required 2
Required 3
Required 4
Required 6
Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost.
Cost of Ending Cost of Goods
Inventory
Sold
FIFO
LIFO
Weighted Average Cost
< Required 2
Required 4 >
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 7 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning