IThe following information applies to the questions displayed below.] The accoun

Question

IThe following information applies to the questions displayed below.] The accounting records of Brooks Photography, Inc., reflected the following balances as of January 1, 2012: Cash Beginning inventory Common stock Retained earnings $16,600 13,195 (145 units $91) 14,400 15,395 The following five transactions occurred in 2012: 1. First purchase (cash) 2. Second purchase (cash) 3. Sales (all cash) 4. Pald $14,550 cash for operating expenses. 5. Pald cash for Income tax at the rate of 30 percent of Income before taxes. 120 units @ $93 200 units @ $101 295 unlts $200

Explanation / Answer

FIFO Qty rate value Beginning Inventory           145            91 13,195 First Purchase 120 93 11,160 Second Purchase 200 101 20,200 FIFO Cost Of Goods Sold Qty rate value 145 91 13,195 120 93 11,160 30 101     3,030 Total 295 27385 Qty rate value Closing Inventory 170 101 17,170 LIFO Cost Of Goods Sold Qty rate value 200 101 20,200 95 93     8,835 Total 295 29035 Qty rate value Closing Inventory 25 93     2,325 145 91 13,195           170 15,520 Weighted Cost Qty rate value Beginning Inventory           145            91 13,195 First Purchase 120 93 11,160 Second Purchase 200 101 20,200 Total Material In           465 44,555 Weighted Cost per unit 95.82 Sale Qty 295 Cost Of Goods Sold     28,266 Closing Inventory Weighted Cost per unit 95.82 Sale Qty 170 Closing Inventory     16,289

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