Question

$ * Data Table - X Hardware, Inc., completed the following inventory transactions du (Click the icon to view the transactions.) Read the requirements Date Item Quantity Unit Cost 105 90 Requirement 1. Without resorting to calculations, determine whid Mar 1 Balance income taxes 4 Purchase 50 $ 87 inventory prices, as is the case here, the 12 Sale 52 In times of income taxe est 3715 84 22 Purchase 31 Sale 24 Requireme decreasing etual inventory record using FIF Start by ent constant nventory balances. Enter the tran balances al Once all of the transactions have cost of inve increasing and on hand at the end of the costing first. For inventory on hand, enter the oldest inventory layl Purchases Cost of goods sold Print Done btal Inventory on hand Ta Enter any number in the edit fields and then continue to the next question

Answer 1

Requirement (1) In Terms of Decreasing Inventory Prices, as is the case here the FIFO Method will result in Hardware inc. paying the lowest income taxes. Requirement 2)-FIFO Purchases Date Qty Unit Cost Total Cost 1-Mar Cost of goods sold Qty Unit Cost Total Cost Inventory on Hand Qty Unit Cost Total Cost 10 $ 90.00 $ 900.00 4-Mar 50 $87.00 $4,350.00 10 $ 90.00 $ 900.00 50 $ 87.00 $4,350.00 12-Mar 8 $ 87.00 $ 696.00 10 $ 90.00 $ 900.00 42 $ 87.00 $3,654.00 22-Mar 37 $ 84.00 $3,108.00 8 $ 87.00 $ 696.00 37 $ 84.00 $3,108.00 31-Mar 21 $ 84.00 $1,764.00 8 $ 87.00 $ 696.00 16 $ 84.00 $1,344.00 Total 87 $ 7,458.00 76 $6,594.00 21 $ 1,764.00 Requirement (3)-LIFO Purchases Date Qty Unit Cost Total Cost 1-Mar Cost of goods sold Qty Unit Cost Total Cost Inventory on Hand Qty Unit Cost Total Cost 10 $ 90.00 $ 900.00 4-Mar 50 $87.00 $4,350.00 10 $90.00 $ 900.00 50 $ 87.00 $4,350.00 12-Mar 8 $90.00 $ 720.00 2 $ 90.00 $ 180.00 50 $ 87.00 $4,350.00 22-Mar 37 $ 84.00 $3,108.00 8 $ 90.00 $ 720.00 37 $ 84.00 $3,108.00 31-Mar 24 $ 84.00 $2,016.00 8 $ 90.00 $ 720.00 13 $ 84.00 $1,092.00 Total 87 87 $7,458.00 76 $6,546.00 21 $ 1,812.00 Requirement (4) - Moving Average Purchases Date Qty Unit Cost Total Cost 1-Mar Cost of goods sold Qty Unit Cost Total Cost Inventory on Hand Qty Unit Cost Total Cost 10 $90.00 $ 900.00 4-Mar 50 $ 87.00 $4,350.00 10 $ 90.00 $ 900.00 50 $ 87.00 $4,350.00 60 $ 87.50 $5,250.00 12-Mar 52 $ 87.50 $4,550.00 8 $ 87.50 $ 700.00 22-Mar 37 $ 84.00 $3,108.00 8 $ 87.50 $ 700.00 37 $ 84.00 $3,108.00 45 $ 84.62 $3,808.00 31-Mar 24 $ 84.62 $ 2,031 21 $ 84.62 $ 1,777 Total 87 $7,458.00 76 $ 6,581 21 $ 1,777

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