Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

image text in transcribed

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) $ $

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

Business Of Sport Management

Authors: John Beech, Simon Chadwick

2nd Edition

027372133X, 9780273721338

More Books

Students also viewed these Accounting questions

Question

What reward policy would you suggest to the university?

Answered: 1 week ago