Question
ABC Company employs a periodic inventory system and sells its inventory to customers for $24 per unit. ABC Company had the following inventory information available
ABC Company employs a periodic inventory system and sells its inventory to customers for $24 per unit. ABC Company had the following inventory information available for May: May 1 Beginning inventory 3,300 units @ $13 cost per unit
May 3 Purchased 1,900 units @ $26 cost per unit
May 8 Sold 2,100 units
May 13 Purchased 2,500 units @ $18 cost per unit
May 18 Sold 2,900 units
May 20 Purchase 1,300 units @ $31 cost per unit May 24 Sold 900 units
May 30 Purchased 2,000 units @ $19 cost per unit During May, ABC Company reported operating expenses of $5,000 and had an income tax rate of 35%. A) Calculate the dollar amount of ending inventory shown on ABC Company's May 31 balance sheet using the FIFO method.
B) Calculate the amount of gross profit shown on ABC Company's income statement for May using the weighted average method.
C) Calculate the amount of net income shown on ABC Company's income statement for May using the LIFO method.
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