Free

70.2K

Verified Solution

Link Copied!

			Units	Per unit cost
Beginning Inventory			200	$      120.00	$   24,000.00
30-Jan	purchase		130	$      124.00	$   16,120.00
12-Mar	purchase		220	$      128.00	$   28,160.00
Total
Sales			350	$      320.00	$ 112,000.00
Ending Inventory
FIFO							LIFO
Ending Inventory							Ending Inventory
Goods Available for Sale							Goods Available for Sale
Deduct ending Inventory							Deduct ending Inventory
Cost of Goods Sold							Cost of Goods Sold
Sales							Sales
Cost of Goods Sold							Cost of Goods Sold
Gross Profit							Gross Profit
Operating Expense				$ 24,000.00			Operating Expense			$ 24,000.00
Operating Income beforetax							Operating Income before tax
Income Tax		40%					Income Tax	40%
Net Profit							Net Profit
Weighted Average
Average Cost
Ending Inventory
Goods Available for Sale
Deduct ending Inventory
Cost of Goods Sold
Sales
Cost of Goods Sold
Gross Profit
Operating Expense				$ 24,000.00
Operating Income beforetax
Income Tax		40%
Net Profit

The accounting recordsof Allen Insulation, Inc. reflected the following balances as ofJanuary 1, 20xx:

Cash	$36,000
Beginning Inventory	$24,000 (200 units @ $120)
Common Stock	$25,000
Retained Earnings	$35,000

The followingtransactions occurred in 20XX:

January30^th Purchase (cash) 130 units @ $124

March 12th Purchase(cash)    220 units @$128

June 3^rdSale(cash)                350 units @$320

Paid $24,000 ofoperating expenses.

Paid cash for incometax at the rate of 40 percent of income before tax.

Compute the cost of goods sold, ending inventory, gross profit,income tax expense and net profit assuming:

FIFO cost flow

LIFO cost flow

Weighted-average cost flow