ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 Beginning inventory 4,200 units @ $9 cost per unit May 6 Purchased 2,000 units @ $12 cost per unit May 8 Sold 3,000 units May 13 Purchased 4,000 units @ $8 cost per unit May 18 Sold 2,100 units May 21 Purchased 2,500 units @ $6 cost per unit May 28 Sold 2,200 units May 30 Purchased 2,300 units @ $17 cost per unit ABC Company reported operating expenses of $26,100 for May and they had a tax rate of 43%. Calculate the amount of net income shown on ABC Company's income statement for May using the LIFO method.
Net income = $38,589
Working
Income statement | |
Net sales | $ 167,900.00 |
Cost of goods sold | $ 74,100.00 |
Gross profit | $ 93,800.00 |
Operating expense | $ 26,100.00 |
Income before tax | $ 67,700.00 |
Income tax expense | $ 29,111.00 |
Net income | $ 38,589.00 |
.
Units | Cost per unit | value | |
Beginning Balance | 4200 | $ 9.00 | $ 37,800 |
Purchases | |||
2000 | $ 12.00 | $ 24,000 | |
4000 | $ 8.00 | $ 32,000 | |
2500 | $ 6.00 | $ 15,000 | |
2300 | $ 17.00 | $ 39,100 | |
Total | 15000 | $ 147,900 |
.
LIFO | ||||
Total Units Available for sale | 15000 | |||
Units Sold | 7300 | |||
Closing Stock in Units | 7700 | |||
Valuation | ||||
Ending Inventory | 4200 | @ | $ 9.00 | $ 37,800 |
2000 | @ | $ 12.00 | $ 24,000 | |
1500 | @ | $ 8.00 | $ 12,000 | |
Value Of Ending Inventory | $ 73,800 | |||
Cost of Goods sold | 147900 minus 73800 | $ 74,100 |
ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per...
ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units @ $9 cost per unit Purchased 2,000 units @ $12 cost per unit Sold 3,000 units Purchased 4,000 units @ $8 cost per unit Sold 2,100 units Purchased 2,500 units @...
ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 Beginning inventory 4,200 units @ $9 cost per unit May 6 Purchased 2,000 units @ $12 cost per unit May 8 Sold 3,000 units May 13 Purchased 4,000 units @ $8 cost per unit May 18 Sold 2,100 units May 21 Purchased 2,500 units @ $6 cost per unit...
ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units @ $9 cost per unit Purchased 2,000 units @ $12 cost per unit Sold 3,000 units Purchased 4,000 units @ $8 cost per unit Sold 2,100 units Purchased 2,500 units @...
ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units @ $9 cost per unit Purchased 2,000 units @ $12 cost per unit Sold 3,000 units Purchased 4,000 units @ $8 cost per unit Sold 2,100 units Purchased 2,500 units @...
ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units @ $9 cost per unit Purchased 2,000 units @ $12 cost per unit Sold 3,000 units Purchased 4,000 units @ $8 cost per unit Sold 2,100 units Purchased 2,500 units @...
ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 Beginning inventory 4,200 units @ $9 cost per unit May 6 Purchased 2,000 units @ $12 cost per unit May 8 Sold 3,000 units May 13 Purchased 4,000 units @ $8 cost per unit May 18 Sold 2,100 units May 21 Purchased 2,500 units @ $6 cost per unit...
Question 6 3.5 pt ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units @ $9 cost per unit Purchased 2,000 units @ $12 cost per unit Sold 3,000 units Purchased 4,000 units @ $8 cost per unit Sold 2,100 units...
Question 5 3P ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units @ $9 cost per unit Purchased 2,000 units @ $12 cost per unit Sold 3,000 units Purchased 4,000 units @ $8 cost per unit Sold 2,100 units Purchased...
Question 4 3 pts ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units @ $9 cost per unit Purchased 2,000 units @ $12 cost per unit Sold 3,000 units Purchased 4,000 units @ $8 cost per unit Sold 2,100 units...
Question 6 3.5 pts ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units e$9 cost per unit Purchased 2,000 units $12 cost per unit Sold 3,000 units Purchased 4.000 units @ $8 cost per unit Sold 2,100 units Purchased 2,520...