Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3 (P.6.4.B) The management of Munich Company is revaluating the appropriateness of using its present inventory cost flow method. For 2014, the accounting records show

image text in transcribed
3 (P.6.4.B) The management of Munich Company is revaluating the appropriateness of using its present inventory cost flow method. For 2014, the accounting records show these data: Inventories Purchase and sales Beginning (8.000 units) $16.000 Total net sales (188.000 units) $780.000 Ending (15.000 units) Total costs of good purchase (195.000 unit) $ 480.500 Purchase were made quarterly as follows. Quarter Units Unit Cost ($) Total cost (8) 1 50.000 2.2 110.000 12 40.000 2.4 196.000 45.000 2.5 112.500 60.000 2.7 162.000 Operating expense were $130.000, and the company's income tax rate is 36% Instructions: Prepare the comparative income statement for 2014 under FIFO an average method. Show the computation of ending inventory

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Auditing An Introduction With Suggested Answers To Discussion Questions

Authors: Darwin J. Casler

1st Edition

0894130978, 978-0894130977

More Books

Students also viewed these Accounting questions