Daniel Company uses a periodic inventory system. Data for 2015: beginning mercha

Question

Daniel Company uses a periodic inventory system. Data for 2015: beginning merchandise inventory (December 31, 2014), 2,020 units at $37; purchases, 7,970 units at $39; expenses (excluding income taxes), $193,900; ending inventory per physical count at December 31, 2015, 1,700; sales, 8,290 units; sales price per unit, $79; and average income tax rate, 32 percent. 5.value: 10.00 pointsRequired information Required: 1. Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your intermediate calculations.)

Explanation / Answer

Daniel Company Periodical Inventory Inventory Using FIFO Details Unit Rate Amt $ Sales revenue Opening Balance 2020 37                74,740 Purchases Total Purchase 7970 39              310,830 Total Goods available for sale 9990               38.60              385,570 Sales 8290          654,910 Closing Stock 1700 Clsing Stock value by FIFO From Purchase 1700 39                66,300 Total Sales(goods available for sale-Cl.Stock) 8290              319,270 0 Cost of Ending Inventory 12/31 $           66,300 Cost of Goods sold   $        319,270 Periodical Inventory Inventory Using LIFO Details Unit Rate Amt $ Sales revenue Opening Balance 2020 37                74,740 Purchases Total Purchase 7970 39              310,830 Total Goods available for sale 9990               38.60              385,570 Sales 8290          654,910 Closing Stock 1700 Closing Stock value by LIFO From opening balance 1700 37                62,900 Total Sales(goods available for sale-Cl.Stock) 8290              322,670 0 Cost of Ending Inventory 12/31 $           62,900 Cost of Goods sold   $        322,670 Periodical Inventory Inventory Using Wtd average Details Unit Rate Amt $ Sales revenue Opening Balance 2020 37                74,740 Purchases Total Purchase 7970 39              310,830 Total Goods available for sale 9990               38.60              385,570 Sales 8290          654,910 Closing Stock 1700 Closing Stock value by Wtd Average Sales 1700               38.60                65,613 Total Sales(goods available for sale-Cl.Stock) 8290              319,957 0 Cost of Ending Inventory 12/31 $           65,613 Cost of Goods sold   $        319,957 Daniel Company Periodical Inventory for the Period ending Dec 31.2015. FIFO   LIFO Wtd Average Sales Revenue             654,910          654,910              654,910 Cost Of Goods Sold=             319,270          322,670              319,957 Gross Profit             335,640          332,240              334,953 Operating Expenses               193,900          193,900              193,900 Income before Tax               141,740          138,340              141,053 Income Tax @32%               45,357            44,269                45,137 Net Income               96,383            94,071                95,916

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