Emily Company uses a periodic inventory system. At the end of the annual...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:
Units
Unit Cost
Inventory, December 31, prior year
2,890
$
12
For the current year:
Purchase, April 11
8,860
13
Purchase, June 1
7,930
18
Sales ($55 each)
10,860
Operating expenses (excluding income tax expense)
$
191,500
Required:
1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.
EMILY COMPANY
Income Statement
For the Year Ended December 31, current year
Case A
Case B
FIFO
LIFO
Sales revenue
$597,300
$597,300
Cost of goods sold:
Beginning inventory
$34,680
$34,680
Purchases
257,920
257,920
Goods available for sale
292,600
292,600
Ending inventory
154,310
111,770
Cost of goods sold
?
?
Gross profit
?
?
Operating expenses
?
?
Pretax income
?
?
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!
