Answer:
Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. Compute the income tax expense for each method
FIFO LIFO WA
Sales 131.200 131.200 131.200
Cost of goods 62650 63850 63.317,92
Gross profit 68.550 67.350 67.882
Salaries 38000 38000 38000
EBiT 30.550 29.350 29.882
Income tax 637,5 7337,5 7470,518868
net Income 22.913 22.013 22.412
b. Record the above transactions in general journal form
1
Db Inventory 23250
Cr Cash 23250
Purcahse 1
2
Db Inventory 25600
Cr Cash 25600
Purchase 2
3
Db Cash 131200
Cr revenue 131200
Sales
4
Db Cost of goods 62650
Cr Inventory 62650
Cost of goods
Explanation:
Units Cost Price Cost Price
Begining Inventory 220 150 33.000
purchase 1 150 155 33.250
purchase 2 160 160
Sales 410 320 131.200
FIFO Units Cost Sale Price Cost Price Cost
Begining Inventory 220 150 220 33.000 33000
purchase 1 150 155 150 23.250 23250
purchase 2 160 160 40 25.600 6400
Sales 410 320 131.200 62650
0
LIFO Units Cost Sale Price Cost Price Cost of g
Begining Inventory 220 150 100 33.000 15000
purchase 1 150 155 150 23.250 23250
purchase 2 160 160 160 25.600 25600
Sales 410 320 131.200 63850
0
WA Units Cost Sale Price Cost Price Cost of g.
Begining Inventory 220 150 0 33.000 0
purchase 1 150 155 0 23.250 0
370 152 56.250
purchase 2 160 160 0 25.600 0
530 154 410 81.850 63.317,92
Sales 410 320 131.200
FIFO LIFO WA
Sales 131.200 131.200 131.200
Cost of goods 62650 63850 63.317,92
Gross profit 68.550 67.350 67.882
Salaries 38000 38000 38000
EBiT 30.550 29.350 29.882
Income tax 7637,5 7337,5 7470,518868
net Income 22.913 22.013 22.412
1
Db Inventory 23250
Cr Cash 23250
Purcahse 1
2
Db Inventory 25600
Cr Cash 25600
Purchase 2
3
Db Cash 131200
Cr revenue 131200
Sales
4
Db Cost of goods 62650
Cr Inventory 62650
Cost of goods