Exercise 6-4 Income effects of inventory methods L.O. A1
Park Company reported the following March purchases and sales data for its only product. |
Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||||||
Mar. | 1 | Beginning inventory | 150 | units | @ $7.00 | = | $ | 1,050 | ||||||||
Mar. | 10 | Sales | 90 | units | @$15 | |||||||||||
Mar. | 20 | Purchase | 220 | units | @ $6.00 | = | 1,320 | |||||||||
Mar. | 25 | Sales | 145 | units | @$15 | |||||||||||
Mar. | 30 | Purchase | 90 | units | @ $5.00 | = | 450 | |||||||||
|
|
|
|
|
|
|||||||||||
Totals | 460 | units | $ | 2,820 | 235 | units | ||||||||||
|
|
|
|
|
|
|||||||||||
|
Park uses a perpetual inventory system. For specific identification, ending inventory consists of 225 units, where 90 are from the March 30 purchase, 80 are from the March 20 purchase, and 55 are from beginning inventory. |
1. |
Complete comparative income statements for the month of March for Park Company for the four inventory methods. Assume expenses are $1,600, and that the applicable income tax rate is 30%.(Round per unit costs to three decimal places. Round your answers to the nearest dollar amounts. Input all amounts as positive values. Omit the “$” sign in your response.) |
PARK COMPANY Income Statements For Month Ended March 31 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Specific Identification |
Weighted Average |
FIFO | LIFO | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | $
Problem 6-1A Part 1
|
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more