Question
Flint Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Purchases
Flint Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Purchases Cost of Goods Sold Ending Inventory Date Units Cost Total Units Cost Total Units Cost Total Oct. 2 8,700 $ 12 $ 104,400 8,700 $ 12 $ 104,400 15 14,500 16 232,000 [1] [2] [3] [4] [5] 29 22,200 [6] [7] [8] [9] [10] [11] [12] [13] The company accountant has prepared the following partial statement of income to help management understand the financial statement impact of each cost determination cost formula. FIFO Average Sales $ 546,000 $ 546,000 Cost of goods sold Gross profit Operating expenses 214,000 214,000 Income before income tax Income tax expense ( 30%) Net income (a) Fill in the missing amounts in the perpetual inventory schedule, assuming the use of the FIFO cost formula. Purchases Cost of Goods Sold Ending Inventory Date Units Cost Total Units Cost Total Units Cost Total Oct. 2 8,700 $ 12 $ 104,400 8,700 $ 12 $ 104,400 15 14,500 16 232,000 enter a number of units enter a dollar amount enter a number of units enter a dollar amount $ enter a total amount 29 22,200 (total units sold) enter a number of units $ enter a dollar amount enter a number of units enter a dollar amount $ enter a total amount
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