Question

Stewart Company sold 180 units @ $320each on October 31, 2014. Cash selling and administrative expenseswere $15,000. The company’s income tax rate is 40%. The followinginformation is also available:

beginning inentory 30 units @180

Feb 3 purchase 60 units @190

June 2 purchase 70 units @220

Oct 1 purchase 40 units @230

a) Determine the amount of cost ofgoods sold using:

FIFO

LIFO

Weighted Average

b) Determine the amount of endinginventory using:

FIFO

LIFO

Weighted Average

c) Determine the company’s net income(after income taxes) using:

FIFO

LIFO



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *