User Account

All Pages

Calculate cost ol goods sold

Assignment Help Accounting Basics
Reference no: EM131624206

Problem - UFO liquidation

Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception in 2009. The company began 2016 with the following inventory layers (listed in chronological order of acquisition):

12,500 units @ $20 - $250,000

17,500 units @ $25 - 437,500

Beginning inventory - $687,500

During 2016, 35,000 units were purchased for $30 per unit. Due to unexpected demand for the company's product, 2016 sales totaled 43,000 units at various prices, leaving 22,000 units in ending inventory.

Required:

1. Calculate cost ol goods sold for 2016.

2. Determine the amount of LIFO liquidation profit that the company must report in a disclosure note to its 2016 financial statements. Assume an income tax rate of 35%.

3. If the company decided to purchase an additional 8,000 units at can per unit at the end of the year, how much income tax currently payable would be saved?

Reference no: EM131624206

Questions Cloud

Do the other central banks have a similar role as the fed : Do the other Central Banks have a similar role as the Fed?
Add some general information about yourself : Add some general information about yourself. Add a picture. Be sure that you have permission to use the picture. Select Conceptual Web Diagram for the template.
Discuss the concept of unrelated business income tax : discuss the concept of unrelated business income (UBI) and unrelated business income tax (UBIT).
Describe the types of income or loss the investor has : An investor buys a bond for $1,000. The bond pays $40 in interest every six months. After two years, the investor sells the bond for $980.
Calculate cost ol goods sold : Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception in 2009. Calculate cost ol goods sold for 2016
What is the market value of its equity today : If Colt's free cash flows are expected to grow by 9.7% per year, what is the market value of its equity today?
Authors mean by stakeholder perspective in csr : What do our authors mean by a stakeholder perspective in CSR?
Betas for aim and cibc : CIBC: fund standard deviation is 14.56, and beta is 0.84. index st. deviation is 16.35. and beta 1.00
What is meant by corporate social responsibility : What is meant by Corporate Social Responsibility (CSR)?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd