The accounting records of Allen Insulation, Inc. reflected the following balances as of January 1, 20xx:

Cash	$36,000
Beginning Inventory	$24,000 (200 units @ $120)
Common Stock	$25,000
Retained Earnings	$35,000

The following transactions occurred in 20XX:

1. January 30^th : Purchase for cash 130 units @ $124 each

2. March 12th: Purchase for cash 220 units @ $128 each

3. June 3^rd : Sold 350 units for cash @ $320 each.

4. Paid $24,000 of operating expenses during the year.

5. Paid income tax in cash at the rate of 40 percent of income before tax.

Required:

Compute the cost of goods sold, ending inventory, gross profit, income tax expense and net profit for each of the cost flow assumptions:

• FIFO cost flow
• LIFO cost flow
• Weighted-average cost flow

Use the following Excel template: Inventory Template

ACCT 2010 Chapter 5 Templates 2015_1 - Excel A Ashley Tanner AT - 0 Comme Help Search Share AutoSave Of H elva File Home Insert Page Layout Formulas Data Review View fx fx 2 { 2 2 1 A 2 9 9 Insert AutoSum Recently Financial Logical Text Date & Lookup & Math & More Function Used Time Reference Trig Functions Function Library O2 A @ @ @ O G Define Name VE Name Manager Use in Formula Create from Selection Defined Names Trace Precedents Dr Show Formulas Sa Trace Dependents Error Checking F Remove Arrows Evaluate Formula Formula Auditing Watch Window * Calculate Now Calculation Calculation Calculate Sheet Options Calculation 012 AC AD AE AF Beginning Inventory 30-Jon purchase 12-Mor purchase Units Per unit 200 $ 120,00 130 124.00 220 128.00 24000.00 16120.00 28160.00 Total 68280.00 112000.00 Sales 350 $320.00 Ending Inventory FIFO LIFO Ending Inventory Ending Inventory Goods Available for Sale Deduct ending Inventory Cost of Goods Sold Goods Available for Sale Deduct ending Inventory Cost of Goods Sold Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income before tax Income Tax (40%) Net Profit Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income before tax Income Tax (40%) Net Profit Weighted Average Cost Ending Inventory Goods Available for Sale Deduct ending Inventory Cost of Goods Sold I K HH POR T V W X Y Z AA AB AC AD AE AF AG AH AI AJAKAL 21 Cost of Goods Sold Cost of Goods Sold 23 Sales 24 Cost of Goods Sold 25 Gross Profit 26 Operating Expense 27 Operating Income before tax 21 Income Tax (40%) 23 Nat Profit Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income before tax Income Tax (40%) Net Profit 1 Weighted Average Cost 36 Ending Inventory 3 Goods Available for Sale 41 Deduct anding Inventory 4 Cost of Goods Sold 4 Sales 4 Cost of Goods Sold 4 Gross Profit 4 Operating Expense 47 Operating Income before tax 4 Income Tax (40%) 4 Net Profit 0 #REF! #REF! #REF! #REF! #REF! #REF! #REF #REF! #REF! #REF! #REF