Hello please! # 15 Missed this lecture. 12 Purchase 600 units $25 28 Purchase 40

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Hello please! # 15

Missed this lecture.

12 Purchase 600 units $25 28 Purchase 400 units S30 20 Sale 540 units u $38 Instructions (a) Assuming that perpetual inventories are not maintained and that a physical count at the end of the month shows 560 (b) Assuming that perpetual records are maintained and they tie into the general ledget, calculate the ending inventory E8-15 (Lo3) (FIFO and LIFO; Income Statement Presentation) The board of directors of Ichiro Corporation is considering units on hand, what is the cost of the ending inventory using (1) FIFO and (2) LIFO? using (1) FIFO and (2) LIFO whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available. 21,000 units S50 Sales Inventory, January 1 Purchases 6,000 units 22 10,000 units 25 7000 units 30 Inventory December 3 Operating expenses 000 units $200,000 Instructions Prepare a condensed income statement for the year on both bases for comparative purposes 16 (LO3) (FIFO and LIFO Effects) You are the vice president of finance of Sandy Alomar Corporation, a retail com- E8- pany appear belovw that prepared two different schedules of gross margin for the first quarter ended March 31, 2017. These schedules Sales Cost of 55 per umit) Coods Sold Margin $124,900 129,40 S25.200 20600 ScheduleI 150,000

Explanation / Answer

Condensed income statement :

First in first out Last in first out Sales 1050000 1050000 Cost of goods sold Beginning inventory 120000 120000 Purchase 592000 592000 Cost of goods available for sale 712000 712000 Ending inventory (235000) (164000) Cost of goods sold (477000) (548000) Gross profit 573000 502000 Less: Operating expense (200000) (200000) Net operating income 373000 302000

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