125 Chapter 7 Ha 2 Required information The nation to the stums dayed bet Emily Company uses a penodic inventory system At the end of the annual accounting period, December 21 of the cuent year the accounting records provided the folowing information for product 2 For the current years Proue, April 1 Purchase Sales (855 each Cont 14 3.930 Required 1. Prepare a separate income statement through pretax income that details cost of goods sold for Le Case A FIFO and C LVO EMILY COMPANY loco mest For the Year Ended December 21, ment year Cate A FFO Case LFO Cost of goods G Check my work KING SIZE Chapter 7 Homework 3 Required information P22 129 (The following information applies to the questions displayed below 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 Inventory, December 31, prior year Cest 2,00 $35 For the current years Purchase, April 11 16 Purchase, June 1 7.93 21 Sales (355 each) 10,840 Operating expenses lexcluding income tax expense) $194,500 2. Compute the difference between the pretax income and the ending inventory amount for the two cases Comparison of Aunts Preta income Ending inventory Cass A FFO Case LIFO Difference Check my work uone Chapter 7 Homework 20.minecation.com 4 Required information P (The following information applies to the questions displayedt below 125 He Emily Company uses a periodic inventory system. At the end of the annual accounting period. December 31 of the curent year the accounting records provided the following information for product 2 Inventory, December 31, prier year For the current years Units Cast 2,004 $15 16 7,938 21 10,00 Operating expenses lexcluding income tax expense) $194,500 Purchase, April 11 Purchase, June 1 Sales ($55 each) 3. Which inventory costing method may be preferred for income tax purposes? Which inventory costing method may be prefamed for income tax purposes? Check my work S Required information [The following information applies to the questions displayed below.] 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: Unit Units Cost For the current year: Inventory, December 31, prior year Purchase, April 11. Purchase, June 1 2,860 $15 8,860 16 7,930 21 Sales ($55 each) 10,840 Operating expenses (excluding income tax expense) $194,500 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. Cost of goods sold: EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO Case B LIFO Part 2 of 3 5 Hin Print rences Required information [The following information applies to the questions displayed below.) 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: Unit Units Cost Inventory, December 31, prior year For the current year:: Purchase, April 11 Purchase, June 1 Sales ($55 each) 2,860 $15 8,860 16 7,930 21 10,840 Operating expenses (excluding income tax expense) $194,500 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Pretax income Ending inventory. Case A FIFO Case B LIFO Difference 4 Required information Part 3 of 3 [The following information applies to the questions displayed below] 25 points 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: Unit Units Cost elook Inventory, December 31, prior year For the current year: Purchase, June 1 Sales ($55 each) 2,860 $15 Purchase, April 11 8,860 16 7,930 21 10,840 Operating expenses (excluding income tax expense) $194,500 Hind Print 3. Which inventory costing method may be preferred for income tax purposes? ferences Which inventory costing method may be preferred for income tax purposes