Unitech has the following inventory information.
July 1 Beginning Inventory 20 units at $19 $380
7 Purchases 70 units at $20 1,400
22 Purchases 10 units at $22 220
A physical count of merchandise inventory on July 31 reveals that there are 30 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is
7. Shandy Shutters has the following inventory information.
Nov. 1 Inventory 15 units @ $8.00
8 Purchase 60 units @ $8.60
17 Purchase 30 units @ $8.40
25 Purchase 45 units @ $8.80
A physical count of merchandise inventory on November 30 reveals that there are 50 units on hand. Assume a periodic inventory system is used. Ending inventory under LIFO is
8. Lee Industries had the following inventory transactions occur during 2010:
2/1/10 Purchase 18 $45
3/14/10 Purchase 31 $47
5/1/10 Purchase 22 $49
The company sold 51 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's after-tax income using LIFO? (Rounded to whole dollars)
9. Companies adopt different cost flow methods for each of the following reasons except
a. income statements effects.
b. tax effects.
c. balance sheet effects.
d. cash flow effects.
10. Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using
a. LIFO will have the lowest cost of goods sold.
b. FIFO will have the highest ending inventory.
c. FIFO will have the highest cost of goods sold.
d. LIFO will have the highest ending inventory.