Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given: Company NOPs inventory activity in the month of June 2020: Beginning inventory, June 1 400 units at $10 each Purchase on account June 12

Given: Company NOPs inventory activity in the month of June 2020:

Beginning inventory, June 1

400 units at $10 each

Purchase on account June 12

600 units at $11 each

Sale on account June 14

700 units at $15 each

Required:

A. Choose the column that represents the June 2020 financial statement where the line item will appear and fill in the dollar amount and calculation using the LIFO inventory method. Include your calculation. [5 points]

B. Choose the column that represents the June 2020 financial statement where the line item will appear and fill in the dollar amount and calculation using the FIFO inventory method. Include your calculation. [5 points]

Use the format in the attachment below

  1. LIFO [5 points]

Income Statement

Statement of Cash Flows

Balance Sheet

1. Cost of Goods Sold

2. Inventory

3. Sales

4. Gross Profit

  1. FIFO [5 points]

Income Statement

Statement of Cash Flows

Balance Sheet

1. Cost of Goods Sold

2. Inventory

3. Sales

4. Gross Profit

  1. Calculate the Gross profit ratio and Inventory Turnover ratio under the LIFO method and support your answer with a calculation. [4 points] Use the format in the attachment below

Gross profit ratio

Inventory Turnover ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Intelligence

Authors: Income Mastery

1st Edition

1647773210, 978-1647773212

More Books

Students also viewed these Finance questions

Question

Distinguish between poor and good positive and neutral messages.

Answered: 1 week ago

Question

Describe the four specific guidelines for using the direct plan.

Answered: 1 week ago