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3 years ago

7

Tamarisk, Inc. had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 94 $94 Mar. 14,

2017 Purchase 161 $98 May 1, 2017 Purchase 114 $102 The company sold 265 units at $131 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $2600, what is the company’s after-tax income using LIFO?
a. $4012
b. $3982
c. $5689
d. $5732

1 answer:

Vedmedyk [2.9K]3 years ago

5 0

Answer:

Company’s after-tax income using LIFO would be $3,982

Explanation:

Revenues: 265 * $131 = $34,715

To calculate the cost of the units sold using LIFO you have to use the cost of the last purchases.

For this case it would be:

114 units * $102 + 151 units * $ 98 = $26,426

Once we have the gross profit (deducting the cost from the net sales), we have to deduct the expenses to obtain the net profit before taxes.

$34,715 net sales

-

$26,426 LIFO cost of goods

-----------

$8,289 gross profit

-

$2,600 expenses

----------

$5,689 net profit before taxes

$1,707 (30% TAX)

----------

$3,982 net income

To have the total income we have to deduct the tax that is calculated mutiplying the net income before tax by the taxe rate.

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2 years ago

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Answer:

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Explanation:

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Fixed expense = $4,600

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Break-even point in unit sales = Fixed expense / [Selling price - Variable expense]

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3 years ago

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1 year ago

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Answer:

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Explanation:

Shipping and handling charges are attached.

Given: Discounted price= $65.55.

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Sales tax= 6%.

Now, find the cost of coat after tax.

Cost of coat= $77.77+(77.77\times 6\%)$

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Hence, cost of coat after tax and shipping charges= $91.39.

Next finding total cost of coat if sold at discount after tax.

Cost of coat at discounted price after tax= $65.55+(65.55\times 6\%)$

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⇒ Cost of coat at discounted price after tax= $\$ 69.48$

Adding shipping charges to the cost of coat= $69.48+6.95=\$ 76.43$

Hence, cost of coat at discounted price after tax and shipping charges= $76.43.

Finding saving amount by ordering coat at the sale price or discounted price.

∴ Saving = $Total\ cost\ of\ coat\ at\ regular\ price - Total\ cost\ of\ coat\ at\ discounted\ price$

Saving= $91.39-76.43= \$ 14.96$

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