Kleso, Intermediate Accounting, 16e Help I System Announcements 1 Teal Football
ID: 2556012 • Letter: K
Question
Kleso, Intermediate Accounting, 16e Help I System Announcements 1 Teal Football Shop began operations on lanuary 2, 2017. The following stock record card for footballs was taken from the records at the end of the yen. ES Units Unit InvoiceInvolce Amount $1,560 1,500 ,900 1,410 1,204 $7,574 Date Voucher Terms Received Cost 1/15 10624 Net 30 3/15 11437 1/5, net 30 6/20 21332 1/10, net 30 9/12 27644 1/10, net 30 11/24 31269 1/10, net 30 60 75 100 94 86 415 $26 20 19 1s 14 dy Totals A physical inventory on December 31, 2017, reveals that 117 footbaits were in stock. The bokkeeper informs you that al the discounts were taken. Assume thet Teal Foothall Shop uses the Unvice price less discount for recording purchases Compute the December 31, 2017, inventory using the FLPO method. (Round per unit and final answer to 2 decimal paces, eg. 35.57) Ending Inventory using the FLFO method s decimal paces, ag. 35.s7) Compute the 2017 cost of goods sold using the LIFC Cost of Goods Sod using the LIFO method method. (Round per wnit and final anewer to 2 eaxes in 2017, using the inventory method woul o you recommend to the ow Show.Work Click if you would like to Shaw Work for this question: OExplanation / Answer
FIFO Ending Inventory 12/31/17
86 Units * 14(1-0.01) = 1191.96
31 units * 15*(1-0.01) = 460.35
Ending inventory = 1652.31
Cost of goods sold under LIFO =
We would recommend FIFO method to the owner to minimize income taxes in 2017, using the inventory information for footballs as a guide.
Units Price Total 60 26 1560 75 20 * (1-0.01) 1485 100 19* (1-0.01) 1881 63 15* (1-0.01) 935.55 Total 5861.55Related Questions
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