Question

Copy Center sells laser printers and supplies. Assume Copy Center started the year with containers of ink​ (average cost of ​each, FIFO cost of ​each, LIFO cost of ​each). During the​ year, Copy Center purchased containers of ink at and sold units for each. Copy Center paid operating expenses throughout the​ year, a total of . Ignore income taxes for this exercise. Prepare Copy​ Center's income statement for the current year ended December 31 under the​ average, FIFO, and LIFO inventory costing methods. Include a complete statement heading.

Answer 1

Answer:

The question is incomplete, so I looked for a similar one:

Copy Center sells laser printers and supplies. Watson Copy Center started the year with 90 containers of ink​ (average cost of $ 8.50 ​each, FIFO cost of $ 8.90 ​each, LIFO cost of $ 7.80​each). During the​ year, Watson Copy Center purchased 720 containers of ink at $ 10.30 and sold 600 units for $ 19.75 each. Watson Copy Center paid operating expenses throughout the​ year, a total of $ 5000. Watson Copy​ Center's income statement-excluding the effects of income tax under each of the​average-cost, FIFO, and LIFO inventory costing methods--is given.

Total sales revenue = 600 x $19.75 = $11,850

COGS under weighted average = {[(90 x $8.50) + (720 x $10.30)] / 810} x 600 = $6,060

COGS under FIFO = (90 x $8.90) + (510 x $10.30) = $6,054

COGS under LIFO = 600 x $10.30 = $6,180

Copy Center

Income Statement for the year 202x

(using weighted average)

Sales revenue             $11,850

COGS                          ($6,060)

Gross profit                  $5,790

Operating expenses  ($5,000)

Net income                     $790

Copy Center

Income Statement for the year 202x

(using FIFO)

Sales revenue             $11,850

COGS                          ($6,054)

Gross profit                  $5,796

Operating expenses  ($5,000)

Net income                     $796

Copy Center

Income Statement for the year 202x

(using LIFO)

Sales revenue             $11,850

COGS                          ($6,180)

Gross profit                  $5,670

Operating expenses  ($5,000)

Net income                     $670