Question
Periodic Inventory Method Better Bottles, Inc. uses a PERIODIC inventory system and has the following information available: Description # of Units Cost per Unit Total
Periodic Inventory Method | |||||||||
Better Bottles, Inc. uses a PERIODIC inventory system and has the following information available: | |||||||||
Description |
| # of Units |
| Cost per Unit |
| Total Cost | |||
Beginning inventory | 20 | $20.00 | $400 | ||||||
Jan 5 sold | 15 | ||||||||
Jan 15 purchase | 27 | $22.00 | 594 | ||||||
Jan 18 sold | 21 | ||||||||
Jan 20 purchase | 33 | $30.00 | 990 | ||||||
Total goods available for sale | 80 | $1,984 | |||||||
| |||||||||
Total goods sold | 36 | ||||||||
Required: | |||||||||
1 | Calculate both Cost of goods sold and Ending inventory using the Periodic FIFO Method. | ||||||||
2 | Calculate both Cost of good sold and Ending Inventory using Periodic LIFO Method. | ||||||||
3 | Use your calculations from 1-2 and complete the Income Statement. | ||||||||
The company income tax rate: | 0.25 | ||||||||
1 | FIFO Cost of Goods Sold - PERIODIC | ||||||||
Units Sold Taken From: |
| # of Units |
| Cost per Unit |
| Total Cost | |||
|
| ||||||||
Total Cost of Goods Sold FIFO |
| ||||||||
FIFO Ending Inventory - PERIODIC | |||||||||
Inventory Available |
| # of Units |
| Cost per Unit |
| Total Cost | |||
Beginning inventory | |||||||||
+Purchase | |||||||||
+Purchase | |||||||||
(Less Cost of Goods Sold) |
| ||||||||
Ending Inventory FIFO | |||||||||
2 | LIFO Cost of Goods Sold - PERIODIC | ||||||||
Units Sold Taken From: |
| # of Units |
| Cost per Unit |
| Total Cost | |||
|
| ||||||||
Total Cost of Goods Sold LIFO |
| ||||||||
LIFO Ending Inventory - PERIODIC | |||||||||
Inventory Available |
| # of Units |
| Cost per Unit |
| Total Cost | |||
Beginning inventory | |||||||||
+Purchase | |||||||||
+Purchase | |||||||||
(Less Cost of Goods Sold) |
| ||||||||
Ending Inventory LIFO | |||||||||
3 | Income Statement - Periodic Inventory Method | ||||||||
|
| FIFO |
| LIFO | |||||
Sales revenue, net | 25,000 | 25,000 | |||||||
Cost of goods sold |
|
| |||||||
Gross profit | |||||||||
Operating expenses | 8,000 | 8,000 | |||||||
Operating income before tax | |||||||||
Income tax expense | |||||||||
Net income |
|
| |||||||
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