Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,150 units at $38; purchases, 7,870 units at $40; expenses (excluding income taxes), $194,500; ending inventory per physical count at December 31, current year, 1,700 units; sales, 8,320 units; sales price per unit, $79; and average income tax rate, 34 percent.
Required:
1-a. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.
1-b. Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods.
only need help with 1B and please show how you got the answer, thank you
Cost of Goods Sold Units Beginning inventory Purchases Inventory Costing Method FIFO LIFO Average Cost $ 81,700 $ 81,700 $ 81,700 314,800 314,800 314,800 396,500 396,500 396,500 68,000 64,600 67,270 $ 328,500 331,900 $ 329,230 2,150 7,870 10,020 1,700 8,320 Goods available for sale Ending inventory Cost of goods sold Income Statement FIFO LIFO Average Cost Sales revenue Cost of goods sold Gross profit Operating expenses
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
only need help with 1B and please show how you got the answer, thank you