Question

h c h o o e 10.20 cost and Unit Copy Centre d e res. The company started the yew 100 conto weg -average cost of $9.40 each, Focost of 89.10 each During the year Una Copy C each and sold 620 units for $23.00 each. The company paid operating expenses throughout the year, a total of $3.900 Unit Copy Centre income statement excluding the economi FIFO inventory costing methods is given Unit Copy Centre is a corporation subject to a 19% income tax HEB Cick the icon to view the income statement) Compute Unit Copy Centre's income tax expense under the weighted average cost and FIFO inventory costing methods. Which method would you com e income before and m Compute Un Copy Cantre's income tax expense using the weighted average cost and Fo tory cong s ound ) o re ! Uniti Copy Centre Lid. Income Statement For the Year Ended December 31, 2017 Weighted Average Cost FIFO Sales revenue Couto good Newme before tax m Which method would you select tea income before tax and th e income tax expense? method of mentory The income tax re d by using the

Answer 1

FIFO Sales Revenue Cost of Goods Sold Gross Profit Weighted Average Cost $ 14,260.00 $ $ 6,268.00 $ $ 7,992.00 $ $ 3,900.00 $ $ 4,092.00 $ $ 777.48 $ 14,260.00 6,214.00 8,046.00 3,900.00 4,146.00 787.74 Net Income before Tax Income Tax Expense

(a) The income before taxes is maximized by using FIFO method of Inventory Costing.

(b) The income taxes are minimized by using the Weighted Average Cost method of Inventory Costing.