1 | ||||
Cost of Goods Sold | Inventory Costing Method | |||
Units | FIFO | LIFO | Average Cost | |
Beginning Inventory | 2170 | $ 82,460.00 | $ 82,460.00 | $ 82,460.00 |
Purchases | 7930 | $ 317,200.00 | $ 317,200.00 | $ 317,200.00 |
Goods available for sale | 10100 | $ 399,660.00 | $ 399,660.00 | $ 399,660.00 |
Ending Inventory | 1710 | $ 68,400.00 | $ 64,980.00 | $ 67,665.21 |
Cost of goods sold | 8390 | $ 331,260.00 | $ 334,680.00 | $ 331,994.79 |
Explanation : Ending Inventory | ||||
FIFO : 1710 * $40 | ||||
LIFO : 1710 * $38 | ||||
Average Cost : 1710 * (S399660/10100 Units) | ||||
2 | ||||
Income Statement | FIFO | LIFO | Average Cost | |
Sales | $671,200.00 | $671,200.00 | $671,200.00 | |
Less: Cost of goods sold | $331,260.00 | $334,680.00 | $331,994.79 | |
Gross Profit | $339,940.00 | $336,520.00 | $339,205.21 | |
Less : Expenses | $193,300.00 | $193,300.00 | $193,300.00 | |
Net Profit | $146,640.00 | $143,220.00 | $145,905.21 | |
Less : Income Tax | $46,924.80 | $45,830.40 | $46,689.67 | |
Net Income | $99,715.20 | $97,389.60 | $99,215.54 | |
In terms of Net Income, FIFO gives higher results as compared to LIFO. Because the invevtory used in the value of Cost of goods sold is much older and doesn't consider inflation. | ||||
In terms of Taxes Paid, LIFO gives lower results as compared to FIFO. Because valuation of inventory is much lower than today's prices. Therefore LIFO method results in less net income because COGS is greater. | ||||
Required information [The following information applies to the questions displayed below.] Daniel Company uses a periodic...
Required information (The following information applies to the questions displayed below.] Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,170 units at $36; purchases, 7,870 units at $38; expenses (excluding income taxes), $192,800; ending inventory per physical count at December 31, current year, 1,640 units; sales, 8,400 units; sales price per unit, $77; and average income tax rate, 34 percent. Required: 1-a. Compute cost of goods sold...
Required information [The following information applies to the questions displayed below. Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,090 units at $37; purchases, 7,930 units at $39; expenses (excluding income taxes), $194,400; ending inventory per physical count at December 31, current year, 1,800 units; sales, 8,220 units; sales price per unit, $80; and average income tax rate, 30 percent. Required: 1. Compute cost of goods sold...
Required information [The following information applies to the questions displayed below.] Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,130 units at $36; purchases, 7,900 units at $38; expenses (excluding income taxes), $193,900; ending inventory per physical count at December 31, current year, 1,770 units; sales, 8,260 units; sales price per unit, $79; and average income tax rate, 34 percent. Required: 1-a. Compute cost of goods sold...
Required information (The following information applies to the questions displayed below.) Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,120 units at $37; purchases, 7,890 units at $39; expenses (excluding income taxes), $193,900; ending inventory per physical count at December 31, current year, 1,610 units; sales, 8,400 units; sales price per unit, $75; and average income tax rate, 30 percent. Required: 1-a. Compute cost of goods sold...
Required information The following information applies to the questions displayed below.) Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory lending inventory December 31, prior year). 2.000 units at $38: purchases. 8.000 units at $40: expenses (excluding income taxes). $184,500, ending inventory per physical count at December 31, current year, 1.800 units, sales, 8.200 units: sales price per unit, $75; and average income tax rate, 30 percent. Required: 1-a. Compute cost of goods sold...
Required information [The following information applies to the questions displayed below.) Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,140 units at $37; purchases, 7,830 units at $39; expenses (excluding income taxes), $193,200, ending inventory per physical count at December 31, current year, 1,620 units, sales, 8,350 units, sales price per unit, $76, and average income tax rate, 30 percent. Required: 1-a. Compute cost of goods sold...
Required information [The following information applies to the questions displayed below.) Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,140 units at $37; purchases, 7,830 units at $39; expenses (excluding income taxes), $193,200, ending inventory per physical count at December 31, current year, 1,620 units, sales, 8,350 units, sales price per unit, $76, and average income tax rate, 30 percent. Required: 1-a. Compute cost of goods sold...
Required information [The following information applies to the questions displayed below) Daniel Company uses a periodic Inventory system. Data for the current year: beginning merchandise inventory (ending Inventory December 31, prior year), 2.080 units at $35 purchases, 7,970 units at $37, expenses (excluding income taxes $192,800, ending Inventory per physical count at December 31, current year, 1710 units sales, 8,340 units, sales price per unit. $79, and average income tax rate, 32 percent. Required: 1. Compute cost of goods sold...
Required information [The following information applies to the questions displayed below.) Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,000 units at $38; purchases, 8,000 units at $40; expenses (excluding income taxes), $194,500; ending inventory per physical count at December 31, current year, 1,800 units; sales, 8,200 units; sales price per unit, $75; and average income tax rate, 30 percent. Required: 1. Compute cost of goods sold...
pls help me complete Required information [The following information applies to the questions displayed below.] Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,000 units at $38; purchases, 8,000 units at $40; expenses (excluding income taxes), $184,500; ending inventory per physical count at December 31, current year, 1,800 units; sales, 8,200 units; sales price per unit, $75; and average income tax rate, 30 percent. Required: 1-a. Compute...