o Question 9 (of 19)> 9 value: 0.57 points E7-6 Analyzing and Interpreting the F
ID: 2554575 • Letter: O
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o Question 9 (of 19)> 9 value: 0.57 points E7-6 Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, L Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Unit Units Cost 300 $14 Transactions a. Inventory, Beginning For the year b. Purchase, April 11 c. Purchase, June 1 d. Sale, May 1 (sold for $42 per unit) e. Sale, July 3 (sold for $42 per unit) f. Operating expenses (excluding income tax expense), $18,200 12 15 950 850 300 630 Required: 1. Calculate the number and cost of goods available for sale. Number of Goods Available for Sale2.100 units Cost of Goods Availeble for Sale$28.350Explanation / Answer
1. Unit of available for sale = 2100 units
Cost of goods available for sale = $28350
4) Prepare income statement :
6) LIFO minimize income tax
FIFO LIFO Weighted average Sales 39060 39060 39060 Variable cost 11760 13710 12555 Contribution margin 27300 25350 26505 Fixed cost 18200 18200 18200 Income from operation 9100 7150 8305Related Questions
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