Question
ABC and XYZ are identical except that ABC uses the first-in-first-out (i.e., FIFO) cost-flow assumption when accounting for its inventory whereas XYZ uses the last-in-first-out
ABC and XYZ are identical except that ABC uses the first-in-first-out (i.e., FIFO) cost-flow assumption when accounting for its inventory whereas XYZ uses the last-in-first-out (i.e., LIFO) cost-flow assumption. In the schedule shown below, you are provided with information by year about: (1) the numbers of units purchased (i.e., Units Purchased) by each company; (2) the cost that each company paid for each unit it purchased (i.e., Cost per Unit); (3) the number of units that each company sold (i.e., Units Sold); and (4) the per unit sales price that each company charged its customers (i.e., Price per Unit). You are provided with only one schedule because the two companies are identical except for the cost-flow assumptions that they use when accounting for their inventory.
Units PurchasedCost per UnitUnits SoldPrice per UnitYear one1001.00801.75Year two1301.501252.63Year three1451.901303.33Year four402.00803.501a. What was the dollar value of the units purchased by ABC during year four? Round your answer to the nearest integer.
1b. What was the carrying value of ABCs inventory at the end of year four? Round your answer to the nearest integer.
1c. What was ABCs cost of goods sold for year four? Round your answer to the nearest integer.
1d. What was ABCs revenue for year four? Round your answer to the nearest integer.
1e. What was ABCs gross profit for year four? Round your answer to the nearest integer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started