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Marigold Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Purchases
Marigold 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 Cost Total Units Total Units Cost Units Cost Total $ 12 $ 126.000 10.500 10,500 Oct. 2 $ 12 $ 126,000 15 [1] [2] 16 280.000 17.500 [3] [4] [5] 29 22,600 [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 $ 517,000 $517,000 Cost of goods sold Gross profit 182.000 182,000 Operating expenses Income before income tax Income tax expense (30%) Net income Fill in the missing amounts in the perpetual inventory schedule, assuming the use of the FIFO cost formula. Purchases Cost of Goods Sold Total Date Cost Cost Units Total Units Oct. 2 10.500 $ 12 $126.000 15 17.500 16 280.000 22.600 29 (total units sold) $ $
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