The accounting records of Wall’s China Shop reflected thefollowing balances as of January 1, Year 3:
| | | | |
Cash | $ | 18,300 | | |
Beginning inventory | | 17,400 | | (200 @ $87) |
Common stock | | 15,600 | | |
Retained earnings | | 20,100 | | |
|
The following five transactions occurred in Year 3:
- First purchase (cash): 120 units @ $89
- Second purchase (cash): 195 units @ $97
- Sales (all cash): 350 units @ $193
- Paid $13,800 cash for salaries expense
- Paid cash for income tax at the rate of 25 percent of incomebefore taxes
Required
a. Compute the cost of goods sold and endinginventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3)weighted-average cost flow. Compute the income tax expense for eachmethod.
b. Use a vertical model to show the Year 3 incomestatement, balance sheet, and statement of cash flows under FIFO,LIFO, and weighted average. (Hint: Record the events underan accounting equation before preparing the statements.)
I need the Retained earnings for the FIFO LIFO AND WA? please itis not 20100
also I need in the cash flow statement I need the cash flowsinvesting activity and plus; beginning cash balance ?
AND THIS QUESTION;;
At the end of the year, Randy’s Parts Co. had the followingitems in inventory:
Item | Quantity | Unit Cost | Unit Market Value |
P1 | | 60 | | | $ | 85 | | | $ | 90 | |
P2 | | 40 | | | | 70 | | | | 72 | |
P3 | | 80 | | | | 130 | | | | 120 | |
P4 | | 70 | | | | 125 | | | | 130 | |
|
Required
a. Determine the amount of ending inventory usingthe lower-of-cost-or-market rule applied to each individualinventory item.
b. Provide the adjustment necessary to write downthe inventory based on Requirement a. Assume that Randy’sParts Co. uses the perpetual inventory system.
c. Determine the amount of ending inventory,assuming that the lower-of-cost-or-market rule is applied to thetotal inventory in aggregate.
d. Provide the adjustment necessary to writedown the inventory based on Requirement c. Assume thatRandy’s Parts Co. uses the perpetual inventory system.