Question
Problem 5-33 Effect of different inventory cost flow methods on financial statements LO 5-6 The accounting records of Carrols Lamp Shop reflected the following balances
Problem 5-33 Effect of different inventory cost flow methods on financial statements LO 5-6 The accounting records of Carrols Lamp Shop reflected the following balances as of January 1, 2014: Cash $ 17,700 Beginning inventory 18,000 (200 units @ $90) Common stock 14,700 Retained earnings 21,000 The following five transactions occurred in 2014: 1. First purchase (cash) 115 units @ $92 2. Second purchase (cash) 195 units @ $100 3. Sales (all cash) 345 units @ $186 4. Paid $16,400 cash for salaries expense. 5. Paid cash for income tax at the rate of 25 percent of income before taxes. Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. (Do not round intermediate calculations and round your answers to nearest whole dollar amount.)
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