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Units Per unit cost Beginning Inventory 200 $ 120.00 $ 24,000.00 30-Jan purchase 130 $ 124.00 $ 16,120.00 12-Mar purchase 220 $ 128.00 $ 28,160.00
Units | Per unit cost | |||||||||
Beginning Inventory | 200 | $ 120.00 | $ 24,000.00 | |||||||
30-Jan | purchase | 130 | $ 124.00 | $ 16,120.00 | ||||||
12-Mar | purchase | 220 | $ 128.00 | $ 28,160.00 | ||||||
Total | ||||||||||
Sales | 350 | $ 320.00 | $ 112,000.00 | |||||||
Ending Inventory | ||||||||||
FIFO | LIFO | |||||||||
Ending Inventory | Ending Inventory | |||||||||
Goods Available for Sale | Goods Available for Sale | |||||||||
Deduct ending Inventory | Deduct ending Inventory | |||||||||
Cost of Goods Sold | Cost of Goods Sold | |||||||||
Sales | Sales | |||||||||
Cost of Goods Sold | Cost of Goods Sold | |||||||||
Gross Profit | Gross Profit | |||||||||
Operating Expense | $ 24,000.00 | Operating Expense | $ 24,000.00 | |||||||
Operating Income before tax | Operating Income before tax | |||||||||
Income Tax | 40% | Income Tax | 40% | |||||||
Net Profit | Net Profit | |||||||||
Weighted Average | ||||||||||
Average Cost | ||||||||||
Ending Inventory | ||||||||||
Goods Available for Sale | ||||||||||
Deduct ending Inventory | ||||||||||
Cost of Goods Sold | ||||||||||
Sales | ||||||||||
Cost of Goods Sold | ||||||||||
Gross Profit | ||||||||||
Operating Expense | $ 24,000.00 | |||||||||
Operating Income before tax | ||||||||||
Income Tax | 40% | |||||||||
Net Profit | ||||||||||
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:
January 30th Purchase (cash) 130 units @ $124
March 12th Purchase (cash) 220 units @$128
June 3rd Sale (cash) 350 units @$320
Paid $24,000 of operating expenses.
Paid cash for income tax at the rate of 40 percent of income before tax.
Compute the cost of goods sold, ending inventory, gross profit, income tax expense and net profit assuming:
FIFO cost flow
LIFO cost flow
Weighted-average cost flow
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