At May 1, 2022,Whispering Winds Corp.had beginning inventory consisting of280units with a unit cost of $6. During
Question:
At May 1, 2022,Whispering Winds Corp.had beginning inventory consisting of280units with a unit cost of $6. During May, the company purchased inventory as follows:
550units at $6
830units at $7
The company sold1380units during the month for $11per unit.Whispering Winds Corp.uses the average cost method. The value ofWhispering Winds Corp.'s inventory at May 31, 2022 is(Round average cost per unit to 2 decimal places, e.g. 12.52.)
$10790.
$1960.
$1820.
$1680.
The manager ofBlueis given a bonus based on net income before taxes. The net income after taxes is $70060for FIFO and $58300for LIFO. The tax rate is30%. The bonus rate is20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO?
$11760
$16800
$23520
$3360
Auditing Cases An Active Learning Approach
ISBN: 9781266566899
2nd Edition
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt