Question

Score: 5 pus S6-2 (similar to) Question Help Boyd Copy Cather i ner printers and supplies. Assume Boyd Copy Center started the year with 100 containers of ink (average cost of $8.70 oach Fi of $9.50 cach, LIFO cost of $7.70 each) During the year, Boyd Copy Center purchased 000 colors of ink at $10.10 and sold 580 units for $21.50 each Boyd Copy Center paid operating expenses Proughout the year, a total of 7 ore income taxes for this exercise Prepare Boyd Copy Center's income statement for the current year ended December 31 under the average, FIFO, and LIFO inventory costing methods. Include a comp l ement heading Complete the income avement by selecting the appropriate heading and income statement labels, and then calling the amounts for each of the three regio inventory methods. Calculate unit costs to the nearest cent. Round alteractions or whole dolar) Choose from any drop-down list and then click Check Ansa Check Answer & 128M Starta vach Backsp

Answer 1

Boyd Copy Center Income Statement Year Ended December 31 Average FIFO Sales revenue $12,470 $12,470 Cost of goods sold $5,742 $5,718 Gross Profit $6,728 $6,752 Operating expenses $3,775 $3,775 Net Income $2,953 $2,977 LIFO $12,470 $5,858 $6,612 $3.775 $2.837 Working Weighted average Units 100 600 700 Unit Cost $8.70 $10.10 $870.00 $6,060.00 $6,930.00 Weighted average cost per unit $9.90 Ending Inventory = 120 x $9.90 = $1,188 COGS = Beginning inventory + purchases - ending inventory = $870 + $6,060 - $1,188 = $5,742 Beginning Purchase Units 100 600 700 Unit Cost $8.70 $10.10 $870.00 $6.060.00 $6,930.00 FIFO Units Unit Cost 120 $10.10 $1,212.00 Ending Inventory $1,212.00 COGS = Beginning inventory + purchases - ending inventory = $870 + $6,060 - $1,212 = $5,718 LIFO Units Unit Cost 100 $8.70 $870.00 20 $10.10 $202.00 Ending Inventory $1,072.00 COGS = Beginning inventory + purchases - ending inventory = $870 + $6,060 - $1,072 = $5,858 (C) Weighted average Units 100 Unit Cost $8.70 $10.10 600 $870.00 $6,060.00 S6,930.00 700 Weighted average cost per unit $9.90 Ending Inventory = 120 x $9.90 = $1,188 COGS = Beginning inventory + purchases - ending inventory = $870 + $6,060 - $1,188 $5,742