Chapter 7 HW 3 Required information P7-3 (Static) Evaluating Four Alternative Inventory Methods Based on income and Cash Flow L07-2,7-3 The following information applies to the questions displayed below) At the end of January of the current year, the records of Dorner Company showed the following for a particular com that soldats per unit 5 Trymery! Try Prehramay Sale Bale DENNE 50 12. 3.00 1. 370) 250) 140 P7-3 Part 1 Required 1. Assuming the use of a periodic inventory system compute Cost of Goods Sold under nach method of inwestory average cost FIFO, LIFO and specific identification For specific identification assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase 1b. Assuming the use of a periodic inventory system prepare a partial income statement under each method of inventory average Conto, UFO, and to specific identification for specific identification, astone that the first sale was selected from the beginning inventory and the second sole wos selected from the outry 12 purchase Complete this question by entering your answers in the tabs below. Auming the use of a perde Inventory w Cost of Good Son method of wery average com FIO,LIFO, and specie dentification for specification, sume that the first wale wewed from the beginning Inventory and the second tale was lected from the lanuary 12 purchase (Round unter decimal input ampe aus Co Avanos Curable Castel Cat U Ave tur Us Con Sa Sald Puhe 3 periode in a propea parte comment under each montering FLFO and fiction for specific identication that there wilderne Bagong and the second sected to the juny Complete the question by wstring you were in the throw the water that we cost and from the 12 De Co A Bay ya ce God . . Cat C Ce tod Co Chapter THW 4 Required information P7-3 (Static) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow L07-2.73 The following information applies to the questions displayed below! At the end of January of the current year, the records of Donner Company showed the following for a particular tem that sold at $16 per unit WYTY ! BUTY De January 16 (016 Unitat 300 52,145 400 3.600 160 1.200 42541 P7-3 Part 2 2. Between For LFO, which method would result in the higher pretax income? 21. Between FIFO OLIFO, which would result in the higher EPS? Complete the question by entering your answers in the tabs below. RA For UFO, he would result in the higher pretax income? Raq 20

5 Required information P7-3 (Static) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow L07-2,7-3 The following information applies to the questions clayed below) At the end of January of the current year, the records of Donner Company showed the following for a particular tem that sold at $16 per unit Die Ano Inventory. Jangary 5 500 12.345 600 3.610 160 1.21 1370) Puree Jary 12 Purchase. January 26 Sale Sale - o P7-3 Part 3 3. Between FIFO or LIFO, which method would result in the lower income tax expense? Assume a 30 percent average tax rate. (Round your answer to 2 decimal places.) Tax Saving Method Required information P7-3 (Static) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow L07-2, 7-3 The following information applies to the questions displayed below.) At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $16 per unit: Transactions Inventory, January 1 Purchase, January 12 Purchase, January 26 Sale Sale Unit Amount 500 52,365 600 3.600 160 1,280 (370) (250) es P7-3 Part 4 4. Between FIFO or LIFO, which method would produce the more favorable cash flow? Method Chapter 7 HW 3 Required information P7-3 (Static) Evaluating Four Alternative Inventory Methods Based on income and Cash Flow L07-2,7-3 The following information applies to the questions displayed below) At the end of January of the current year, the records of Dorner Company showed the following for a particular com that soldats per unit 5 Trymery! Try Prehramay Sale Bale DENNE 50 12. 3.00 1. 370) 250) 140 P7-3 Part 1 Required 1. Assuming the use of a periodic inventory system compute Cost of Goods Sold under nach method of inwestory average cost FIFO, LIFO and specific identification For specific identification assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase 1b. Assuming the use of a periodic inventory system prepare a partial income statement under each method of inventory average Conto, UFO, and to specific identification for specific identification, astone that the first sale was selected from the beginning inventory and the second sole wos selected from the outry 12 purchase Complete this question by entering your answers in the tabs below. Auming the use of a perde Inventory w Cost of Good Son method of wery average com FIO,LIFO, and specie dentification for specification, sume that the first wale wewed from the beginning Inventory and the second tale was lected from the lanuary 12 purchase (Round unter decimal input ampe aus Co Avanos Curable Castel Cat U Ave tur Us Con Sa Sald Puhe 3 periode in a propea parte comment under each montering FLFO and fiction for specific identication that there wilderne Bagong and the second sected to the juny Complete the question by wstring you were in the throw the water that we cost and from the 12 De Co A Bay ya ce God . . Cat C Ce tod Co Chapter THW 4 Required information P7-3 (Static) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow L07-2.73 The following information applies to the questions displayed below! At the end of January of the current year, the records of Donner Company showed the following for a particular tem that sold at $16 per unit WYTY ! BUTY De January 16 (016 Unitat 300 52,145 400 3.600 160 1.200 42541 P7-3 Part 2 2. Between For LFO, which method would result in the higher pretax income? 21. Between FIFO OLIFO, which would result in the higher EPS? Complete the question by entering your answers in the tabs below. RA For UFO, he would result in the higher pretax income? Raq 20

5 Required information P7-3 (Static) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow L07-2,7-3 The following information applies to the questions clayed below) At the end of January of the current year, the records of Donner Company showed the following for a particular tem that sold at $16 per unit Die Ano Inventory. Jangary 5 500 12.345 600 3.610 160 1.21 1370) Puree Jary 12 Purchase. January 26 Sale Sale - o P7-3 Part 3 3. Between FIFO or LIFO, which method would result in the lower income tax expense? Assume a 30 percent average tax rate. (Round your answer to 2 decimal places.) Tax Saving Method Required information P7-3 (Static) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow L07-2, 7-3 The following information applies to the questions displayed below.) At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $16 per unit: Transactions Inventory, January 1 Purchase, January 12 Purchase, January 26 Sale Sale Unit Amount 500 52,365 600 3.600 160 1,280 (370) (250) es P7-3 Part 4 4. Between FIFO or LIFO, which method would produce the more favorable cash flow? Method