Answered step by step
Verified Expert Solution
Question
1 Approved Answer
thank you in advance The management of Sunland Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average cost.
thank you in advance
The management of Sunland 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: Inventories Beginning (4,000 units) Ending (15,000 units) $12,000 Purchases and Sales Total net sales (179,000 units) Total cost of goods purchased (190,000 units) $921,850 656,000 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 1 50,000 $3.20 $160,000 2 40,000 3.35 134,000 3 40,000 3.50 140,000 4 60,000 3.70 222,000 190,000 $656,000 Operating expenses were $150,000, and the company's income tax rate is 40% Condensed Income Statements FIFO LIFO $ $ > Beginning Inventory Cost of Goods Available for Sale Cost of Goods Purchased Cost of Goods Sold Dividends Ending Inventory Expenses Gross Profit/(Loss) Income before Income Taxes Income Tax Expense Net Income (Loss) Operating Expenses Retained Earnings, January 1 Retained Earnings, December 31 Sales Revenues $ $ Total Eerses Tocal Sales Revenues Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started