Answer:
Net income= 41,806.8
Explanation:
Giving the following information:
The following inventory information for August:
August 1 Beginning inventory 2,200 units at $15 cost per unit
August 6 Sold 1,300 units
August 15 Purchased 1,700 units at $25 cost per unit
August 18 Sold 1,900 units
August 23 Purchased 900 units at $24 cost per unit
August 26 Purchased 700 units at $19 cost per unit
August 29 Sold 2,000 units
August 30 Purchased 1,500 units at $37 cost per unit
During August, Booth Company reported operating expenses of $23,000 and had an income tax rate of 37%
First, we need to calculate the revenues for August.
Weighted-average cost= (15 + 25 + 24 + 19 + 37)/5= $24
Units sold= 5,200 units
COGS= 5,200*24= 124,800
Revenues= gross profit + cost of goods sold= 70,460 + 124,800= 195,260
Cost, LIFO method:
COGS= 700*19 + 900*24 + 1700*25 + 1900*15= 105,900
Income statement:
Revenues= 195,260
COGS= 105,900 (-)
Gross profit= 89,360
Operating expenses= 23,000 (-)
EBIT= 66,360
Tax= 24,553.2 (-)
Net income= 41,806.8
