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ABC Company uses the periodic inventory system. Date Unit Per Unit Jan 1 Beginning Inventory 400 $15 Jan 8 Purchase 250 $17 Jan 15 Sold
ABC Company uses the periodic inventory system.
Date | Unit | Per Unit | |
Jan 1 | Beginning Inventory | 400 | $15 |
Jan 8 | Purchase | 250 | $17 |
Jan 15 | Sold | 500 | $30 |
Jan 22 | Purchase | 300 | $20 |
1. Calculate the cost of goods sold for January and ending inventory at January using first in, first out (FIFO) method
2. Calculate the cost of goods sold for January and ending inventory at January using last in, first out (LIFO) method
3. Calculate gross profit and income tax for both inventory costing methods (FIFO and LIFO). Income tax rate is 35%. (assume no other expense but cost of goods sold)
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