Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help with a condensed income statement Current Attempt in Progress The management of Lily Inc. is reevaluating the appropriateness of using its present

i need help with a condensed income statement
Current Attempt in Progress The management of Lily Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average- cost. The company requests your help in determining the results of operations for 2022 if either the FIFO or the LIFO method had been used. For 2022, the accounting records show these data: Beginning (4,000 units) Ending (12,000 units) Quarter 1 Purchases were made quarterly as follows. 2 (a) Inventories 3 4 Units 50,000 40,000 40,000 60,000 $16,000 190,000 Unit Cost $4.20 4.35 4.50 4.70 Total net sales (182,000 units) Total cost of goods purchased (190,000 units) Total Cost $210,000 174,000 180,000 282,000 $846,000 Operating expenses were $130,000, and the company's income tax rate is 40%. Purchases and Sales Prepare comparative condensed income statements for 2022 under FIFO and LIFO. LILY INC. Condensed Income Statements $ FIFO $ LIFO $1,119,300 846,000 2 I SU
image text in transcribed
The management of Lily inc is reevaluating the appropriateness of using its present inventory cost flow method, which is averagecost. The company requests your help in determining the results of operations for 2022 if elther the FIFO or the LIFO method had been used. For 2022, the accounting records show these data: Purchases were made quarterly as follows. Operating expenses were $130,000, and the compary's income tax rate is 40%. (a) Prepare comparative condensed income statements for 2022 under FIFO and LIFO

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

More Books

Students also viewed these Accounting questions

Question

Factors Affecting Conflict

Answered: 1 week ago

Question

Describe the factors that lead to productive conflict

Answered: 1 week ago

Question

Understanding Conflict Conflict Triggers

Answered: 1 week ago