Your answer is partiaily correct. Try again The management of Felipe Inc. is ree

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Your answer is partiaily correct. Try again The management of Felipe Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company in determining the results of operations for 2015 if either the FIPO or the LIFO method had been used. For 2015, the accounting records show these data: Beginning (7,700 units) Ending (18,700 units) Total net sales (198,000 units) Total cost of goods purchased (209,000 unt) $15,400 821,700 589,600 Purchases were made quarterly as follows S5,000 44,000 4,000 66,000 $2.56 $140,800 2.71119,240 287 126,280 3.08 203,20 89,600 4 Operating expenses were $133,500, and the company's income tax rate is 40%. for 2015 under FIFO and u·(Show computations of ending inventory.) (Round answers to O decimal place, Prepare comparative condensed income statements 1,2s0.) Felipe In

Explanation / Answer

CONDENSED INCOME STATEMENT FIFO LIFO Sales revenue 821700 821700 Cost of Goods sold Bbegining inventory 15400 15400 Cost of Goods purchased 589600 589600 Cost of Goods available for sale 605000 605000 Ending Inventory 57596 43560 Cost of Goods sold 547404 561440 Gross Profit 274296 260260 Operating expense 133500 133500 Income before taxx 140796 126760 Income tax expense 56318.4 50704 Net Income 84477.6 76056

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