Subject: accounting Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (endinginventory December 31, prior year), 2,040 units at $37; purchases, 7,900 units at $39; expenses (excluding incometaxes), $192,900; ending inventory per physical count at December 31, current year, 1,610 units; sales, 8,330 units; salesprice per unit, $78; and average income tax rate, 30 percent.Required:1-a. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.1-b. Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods.2. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow)?3. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow),assuming that prices were falling?Complete this question by entering your answers in the tabs below.Req la Req 1b Req 2 Req 3Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costingmethods.Note: Do not round your intermediate calculations. Round your final answers to the nearestwhole dollar amount.Cost of Goods SoldBeginning inventoryPurchasesGoods available forsaleEnding inventoryCost of goods soldUnitsInventory Costing MethodFIFOLIFO2,0407,9009,9401,6108,330Req 1a00AverageCostReq 1b >0Show less A Prepare income statements under the FIFO, LIFO, and average cost inventory costingmethods.Note: Do not round your intermediate calculations. Round your final answers to the nearestwhole dollar amount. Use the COGS amount from Required 1a.Income StatementSales RevenueCost of goods soldGross profitOperating expensesPretax incomeIncome tax expenseNet incomeFIFOLIFO$$649,740 649,740< Req 1aAverageCost$ 649,740Req 2 >Show less

Name: Subject: accounting Daniel Company uses a periodic inventory system. D
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Description: Subject: accounting Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (endinginventory December 31, prior year), 2,040 units at $37; purchases, 7,900 units at $39; expenses (excluding incometa

Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…

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Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,040 units at $37; purchases, 7,900 units at $39; expenses (excluding income taxes), $192,900; ending inventory per physical count at December 31, current year, 1,610 units; sales, 8,330 units; sales price per unit, $78; and average income tax rate, 30 percent. Required: 1-a. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. 1-b. Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. 2. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow)? 3. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow), assuming that prices were falling?

Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,040 units at $37; purchases, 7,900 units at $39; expenses (excluding income taxes), $192,900; ending inventory per physical count at December 31, current year, 1,610 units; sales, 8,330 units; sales price per unit, $78; and average income tax rate, 30 percent. Required: 1-a. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. 1-b. Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. 2. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow)? 3. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow), assuming that prices were falling?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...

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