Question
The management of Tamarisk, Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the
The management of Tamarisk, Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the accounting records show these data.
Inventory, January 1 (10,500 units) | $ 31,500 | |
Cost of 130,000 units purchased | 442,800 | |
Selling price of 105,000 units sold | 803,000 | |
Operating expenses | 121,000 |
Units purchased consisted of 38,000 units at $3.20 on May 10; 64,000 units at $3.40 on August 15; and 28,000 units at $3.70 on November 20. Income taxes are 28%. (a) Prepare comparative condensed income statements for 2022 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.)
Tamarisk, Inc. Condensed Income Statements choose the accounting period December 31, 2022For the Year Ended December 31, 2022For the Quarter Ended December 31, 2022 | |||
---|---|---|---|
FIFO | LIFO | ||
select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | $enter a dollar amount | $enter a dollar amount | |
select an opening name for section one Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | |||
select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | enter a dollar amount | enter a dollar amount | |
select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | enter a dollar amount | enter a dollar amount | |
select a closing name for subsection one Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | enter a subtotal of the two previous amounts | enter a subtotal of the two previous amounts | |
select between addition and deduction AddLess: select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | enter a dollar amount | enter a dollar amount | |
select a closing name for section one Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | enter a total amount for section one | enter a total amount for section one | |
select a summarizing line for the first part Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | enter a total amount for the first part | enter a total amount for the first part | |
select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | enter a dollar amount | enter a dollar amount | |
select a summarizing line for the second part Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | enter a total amount for two parts | enter a total amount for two parts | |
enter an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | enter a dollar amount | enter a dollar amount | |
select a closing name for this statement Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues | $enter a total net income or loss amount | $enter a total net income or loss amount |
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