Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help! On July 9, Swifty Company sells goods on credit to Blossom Company for $5500, terms 2/10,n/60. Swifty receives payment on July 18. The entry

help! image text in transcribed
image text in transcribed
image text in transcribed
On July 9, Swifty Company sells goods on credit to Blossom Company for $5500, terms 2/10,n/60. Swifty receives payment on July 18. The entry by Swifty on July 18 is: At May 1, 2020, Sunland Company had beginning inventory consisting of 160 units with a unit cost of $6.30. During May, the company purchased inventory as follows: 690 units at $6.30 650 units at $6.00 The company sold 1100 units during the month for $11 per unit. Sunland uses the average cost method. The value of Sunland's inventory at May 31,2020 is $2543.$3586$1043$2468 Vaughn Company's inventory records show the following data: A physical inventory on December 31 shows 3600 units on hand. Vaughn sells the units for $12 each. The company has an effective tax rate of 20%. Vaughn uses the periodic inventory method. What is the difference in taxes if LIFO rather than FIFO is used? $2304 additional taxes $1330 additional taxes $1536 tax savings $1536 additional taxes

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

IT Audit Control And Security

Authors: Robert R. Moeller

1st Edition

0471406767, 9780471406761

More Books

Students also viewed these Accounting questions