Business, 10.04.2020 17:49, johnnny7495
The management of Gresa Inc. requests your help in determining the results of operations for 2017 if either the FIFO or the LIFO method has been used. The company is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. For 2017, the accounting records show these data:
Inventories Purchases and Sales
Beginning (10,000 units) $ 20,000 Total net sales (239,000 units) $ 1,087,450
Ending (21,000 units) Total cost of goods purchased (250,000 units) 596,500
Purchases were made quarterly as follows.
Quarter Units Unit Cost Total Cost
1 65,000 $ 2.20 $ 143,000
2 55,000 2.30 126,500
3 55,000 2.40 132,000
4 75,000 2.60 195,000
250,000 $ 596,500
Operating expenses were $100,000, and the company's income tax rate is 40%.
Prepare comparative condensed income statements for 2017 under FIFO and LIFO.
GRESA INC.
Condensed Income Statements
For the Year Ended December 31, 2017
FIFO LIFO
Sales Revenue $ 1,087,450 $ 1,087,450
Cost of Goods Sold
Beginning Inventory 20,000 20,000
Cost of Goods Purchased 596,500 596,500
Cost of Goods Available for Sale
Ending Inventory
Cost of Goods Sold
Gross Profit / (Loss)
Operating Expenses
Income before Income Taxes
Income Tax Expense
Net Income / (Loss)
Answers: 2
Business, 21.06.2019 21:40, icemaniac
Tandard product costs deerfield company manufactures product m in its factory. production of m requires 2 pounds of material p, costing $4 per pound and 0.5 hour of direct labor costing, $10 per hour. the variable overhead rate is $8 per direct labor hour, and the fixed overhead rate is $12 per direct labor hour. what is the standard product cost for product m? direct material answer direct labor answer variable overhead answer fixed overhead answer standard product cost per unit answer
Answers: 1
Business, 22.06.2019 11:10, evansh78
Use the following account numbers and corresponding account titles to answer the following question. account no. account title (1) cash (2) merchandise inventory (3) cost of goods sold (4) transportation-out (5) dividends (6) common stock (7) selling expense (8) loss on the sale of land (9) sales which accounts would appear on the income statement?
Answers: 3
Business, 22.06.2019 19:00, shey89
Question 55 ted, a supervisor for jack's pool supplies, was accused of stealing pool supplies and selling them to friends and relatives at reduced prices. given ted's earlier track record, he was not fired immediately. the authorities decided to give him an administrative leave, without pay, until the investigation was complete. in view of the given information, it would be most appropriate to say that ted was: demoted. discharged. suspended. dismissed.
Answers: 2
The management of Gresa Inc. requests your help in determining the results of operations for 2017 if...
Social Studies, 26.08.2019 15:10
History, 26.08.2019 15:10
Social Studies, 26.08.2019 15:10
Physics, 26.08.2019 15:10