eezc.mheducation.com hm.xpx Cestion 6 for 7 10.00 points Folowing is partial inf
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eezc.mheducation.com hm.xpx Cestion 6 for 7 10.00 points Folowing is partial informatian for the income statement af Audio Salutions Company under three different nventory costing methods, assuming tre u52cf ? periodic rventory system: Required: 1. Compute cost of goods sld under the FIFO, LFO, and ara coat invammory coating methods Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dellar amount.) riro Liro Beginning irnventory (3110,287S urchas400 unt 10287 10287 16 100 16,100 Ending ior (515 urils) Cost ofgoads sold 2. Prepare ?n ncome stanement trough pretax income for each method. Soles, 298 units, unt sales price, $52: Expenses, 31,660 LIFO O lype hene to search e?Explanation / Answer
FIFO
LIFO
Avg Cost
Cost of Goods Sold :-
Beginning Inventory (381 units)
10287
10287
10287
Purchases (460 units)
16100
16100
16100
Goods available for sale
26387
26387
26387
Ending Inventory (545 units)
(16100) + (85 units * 27)
=18395
(10287) + (164 * 35)
=16027
(545 * 31.38)
=17102
Cost of Goods Sold
7992
10360
9285
Beginning Inventory price pu = 10287/381 = 27
Purchase Price pu = 16100/460 = 35
Avg cost pu = (10287 + 16100) / (381 + 460) = 31.38
(2) Income Statement :-
FIFO
LIFO
Avg Cost
Sales (296 * 52)
15392
15392
15392
(-) COGS
7992
10360
9285
Gross Profit
7400
5032
6107
(-) Exp
1660
1660
1660
Net Profit
5740
3372
4447
FIFO
LIFO
Avg Cost
Cost of Goods Sold :-
Beginning Inventory (381 units)
10287
10287
10287
Purchases (460 units)
16100
16100
16100
Goods available for sale
26387
26387
26387
Ending Inventory (545 units)
(16100) + (85 units * 27)
=18395
(10287) + (164 * 35)
=16027
(545 * 31.38)
=17102
Cost of Goods Sold
7992
10360
9285
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