E7-6 Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3]
Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.
Note: I just want help with the income statement, I think I got everything right. So plz take your time, and give me a good explanation for it. Thank you.
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ck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate co 3 Of the annual accounting period, December 51. Transactions Unit a. Inventory, Beginning Units Cost For the year: 500 $10 ints b. Purchase, April 11 800 c. Purchase, June 1 8 700 12 d. Sale, May 1 (sold for $38 per unit) 500 e: Sale, July 3 (sold for $38 per unit) 520 f. Operating expenses (excluding income tax expense), $19,090 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes? * Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Calculate the number and cost of goods available for sale. Number of Goods Available for Sale 2,000 units Cost of Goods Available for Sale $ 19,800 MC Fraw Transactions Unit @, Inventory, Beginning Units Cost For the year! 508 410 6. Purchase, April 11 C. Purchase, June 1 d Sale, May 1 (sold for $38 per unit) 706 12 e. Sale, July 3 (sold for $38 per unit) 500 f. Operating expenses (excluding income tax expense), $19,090 520 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Calculate the number of units in ending inventory. Ending Inventory 980 units O C (U 9 pe here to search O1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. nts 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes? x Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Requireghe Required 3 Required 4 Required 6 Required 2 Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Cost of Cost of Ending Goods Inventory Sold FIFO 10,640 $ 9,160 LIFO $ 8,840 $ 10,960 Weighted Average Cost $ 9,702 $ 10,098 Mc Graw Prev 8 Nextr. It does not i 3 J . VPEI OLLIIS CAPELISES CALLUULIS HILLUIC LOA SAPCISE ) , PIS, YOU Required: 2.5 1. Calculate the number and cost of goods available for sale. points 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes? x Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Required 6 Prepare an Income Statement that shows under the FIFO method, LIFO method and weighted average method. ORION IRON CORP. Income Statement For the Year Ended December 31 FIFO LIFO Weighted Average Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Income from operations Mc Graw Type here to search O C U3 Unit Transactions Units Cost a. Inventory, Beginning 500 $10 For the year: 2.5 b. Purchase, April 11 800 8 points c. Purchase, June 1 70e 12 d. Sale, May 1 (sold for $38 per unit) e. Sale, July 3 (sold for $38 per unit) 500 520 f. Operating expenses (excluding income tax expense), $19, 000 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods, sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes? x Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Which inventory costing method minimizes income taxes? OFIFO LIFO Weighted Average Type here to search O C U
