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7. Hyper Co. began operations on 1-1-Year 1. Net income before tax under three inventory methods...
8. Hyper Co. began operations on 1-1-Year 1. Net income before tax under three inventory methods...
8. Hyper Co. began operations on 1-1-Year 1. Net income before tax under three inventory methods for the past three years are shown below: Method FIFO Average LIFO Net Income (before taxes) Year 1 Year 2 Year 3 $175,000 $230,000 $250,000 $150,000 $200,000 $215,000 $130,000 $180,000 $ 205,000 Prepare the journal entry to record the change from the LIFO method to the Average method as of January 1, year 4:
E7-8 Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income...
E7-8 Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income (Periodic) [LO 7-3) Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,500 units at $25; purchases, 3,000 units at $28; operating expenses (excluding income taxes), S94,000; ending inventory per physical count at December 31, 1,000 units; sales price per unit, $75; and average income tax rate, 30%. Required: 1. Prepare income statements under the FIFO, LIFO, and weighted...
Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018....
Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2021. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year FIFO Average Cost 2018 $ 46,600 $ 57,200 2019 82,800 72,600 2020 89,400 82,800 Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the...
Below is the net income of Cheyenne Instrument Co., a private corporation, computed under the three...
Below is the net income of Cheyenne Instrument Co., a private corporation, computed under the three inventory methods using a periodic system. FIFO 2018 2019 2020 2021 $26,200 27,100 27,900 31,800 Average Cost $22,900 22,100 25,900 27,400 LIFO $20,500 18,400 22,800 23,300 (Ignore tax considerations.) (a) Assume that in 2021 Cheyenne decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2021, and show...
1. Charolaise had $55,000 of net income before tax in their first year of operations. The...
1. Charolaise had $55,000 of net income before tax in their first year of operations. The only income or expense that was recognized differently for book and tax purposes was the method in which they recognized revenue. Charolaise used a percentage of completion for book purposes and completed contract method for tax purposes. Contract revenue for book was $92,000 and $62,000 for tax. The tax rate was 30%. Prepare the journal entry for income taxes for the current year.
Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018....
Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2021. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year 2018 2019 2020 FIFO $45,800 80,400 86,200 Average Cost $55,600 71,800 80,400 Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost...
The Hasting Company began operations on January 1, 2013 and uses the FIFO method in costing...
The Hasting Company began operations on January 1, 2013 and uses the FIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO instead of FIFO) from the beginning, 1/1/2013. He has the following information available to him: What would net income have been in 2014 if Hastings had used LIFO since 1/1/2013? O $ 110,000 O $ 150,000 O $ 170,000 O $ 230,000 12/31/2013...
Sage Company began operations on January 1, 2015, and uses the average-cost method of pricing inventory....
Sage Company began operations on January 1, 2015, and uses the
average-cost method of pricing inventory. Management is
contemplating a change in inventory methods for 2018. The following
information is available for the years 2015–2017.
Net Income Computed Using
Average-Cost Method
FIFO Method
LIFO Method
2015
$15,860
$18,810
$12,090
2016
18,010
20,800
14,140
2017
19,970
24,990
16,870
(a) Prepare the journal entry necessary to record
a change from the average cost method to the FIFO method in 2018.
(Credit account...
Vaughn Company began operations on January 1, 2015, and uses the average-cost method of pricing inventory....
Vaughn Company began operations on January 1, 2015, and uses the
average-cost method of pricing inventory. Management is
contemplating a change in inventory methods for 2018. The following
information is available for the years 2015–2017.
Net Income Computed Using
Average-Cost Method
FIFO Method
LIFO Method
2015
$15,900
$19,170
$12,110
2016
17,880
20,980
13,990
2017
20,180
25,060
17,120
(a) Prepare the journal entry necessary to record
a change from the average cost method to the FIFO method in 2018.
(Credit account...
Problem #1 Periodic Inventory Methods/Valuation Hyper Company had a beginning inventory on January 1 of 160...
Problem #1 Periodic Inventory Methods/Valuation Hyper Company had a beginning inventory on January 1 of 160 units of Product 4-18-19 at a cost of $20 per unit. During the year, the following purchases were made. Mar. 15 400 units at $23 Sept. 4 330 units at $26 July 20 250 units at $24 Dec. 2 100 units at $29 1,000 units were sold. Hyper Company uses a periodic inventory system. Instructions (a) Determine the cost of goods available for sale....
8. Hyper Co. began operations on 1-1-Year 1. Net income before tax under three inventory methods for the past three years are shown below: Method FIFO Average LIFO Net Income (before taxes) Year 1 Year 2 Year 3 $175,000 $230,000 $250,000 $150,000 $200,000 $215,000 $130,000 $180,000 $ 205,000 Prepare the journal entry to record the change from the LIFO method to the Average method as of January 1, year 4:
E7-8 Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income (Periodic) [LO 7-3) Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,500 units at $25; purchases, 3,000 units at $28; operating expenses (excluding income taxes), S94,000; ending inventory per physical count at December 31, 1,000 units; sales price per unit, $75; and average income tax rate, 30%. Required: 1. Prepare income statements under the FIFO, LIFO, and weighted...
Below is the net income of Cheyenne Instrument Co., a private corporation, computed under the three inventory methods using a periodic system. FIFO 2018 2019 2020 2021 $26,200 27,100 27,900 31,800 Average Cost $22,900 22,100 25,900 27,400 LIFO $20,500 18,400 22,800 23,300 (Ignore tax considerations.) (a) Assume that in 2021 Cheyenne decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2021, and show...
Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2021. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year 2018 2019 2020 FIFO $45,800 80,400 86,200 Average Cost $55,600 71,800 80,400 Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost...
The Hasting Company began operations on January 1, 2013 and uses the FIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO instead of FIFO) from the beginning, 1/1/2013. He has the following information available to him: What would net income have been in 2014 if Hastings had used LIFO since 1/1/2013? O $ 110,000 O $ 150,000 O $ 170,000 O $ 230,000 12/31/2013...
Sage Company began operations on January 1, 2015, and uses the
average-cost method of pricing inventory. Management is
contemplating a change in inventory methods for 2018. The following
information is available for the years 2015–2017.
Net Income Computed Using
Average-Cost Method
FIFO Method
LIFO Method
2015
$15,860
$18,810
$12,090
2016
18,010
20,800
14,140
2017
19,970
24,990
16,870
(a) Prepare the journal entry necessary to record
a change from the average cost method to the FIFO method in 2018.
(Credit account...
Vaughn Company began operations on January 1, 2015, and uses the
average-cost method of pricing inventory. Management is
contemplating a change in inventory methods for 2018. The following
information is available for the years 2015–2017.
Net Income Computed Using
Average-Cost Method
FIFO Method
LIFO Method
2015
$15,900
$19,170
$12,110
2016
17,880
20,980
13,990
2017
20,180
25,060
17,120
(a) Prepare the journal entry necessary to record
a change from the average cost method to the FIFO method in 2018.
(Credit account...
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