Reference no: EM132690319
Question - Jepson Electronic Center began in October with 90 units of merchandise inventory that cost $70 each.
During October, the store made the following purchases:
3-Oct 20 units at $75 each
12-Oct 40 units at $78 each
18-Oct 60 units at $84 each
Jepson uses the periodic inventory system, and the physical count at October 31 indicates that 110 units of merchandise inventory are on hand. Based on this data, answer the following:
Required -
1. Determine the ending merchandise inventory and cost of goods sold amounts for the October financial statements using the FIFO, LIFO, and weighted-average inventory costing methods.
2. Sales revenue for October totaled $22,000. Compute Jepson's gross profit for October using each method.
3. Which method will result in the lowest income taxes for Jepson and why?
4. Which method will result in the highest net income for Jepson and why?
|
What will be the dollar balances in the allowance
: After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar
|
|
Calculate the total profit for last year
: Sam and Tom in the ratio 7:5:8 respectively. Last year, Sam's share of the profit was $70,000. Calculate the total profit for last year
|
|
Compute the flexible budget for the tax department
: During the current month, 3700 tax returns were actually prepared, at an average fee of $294 each. Compute the flexible budget for the tax department
|
|
Calculate the number of units accounted
: Calculate the number of units accounted for by the Assembling Department for December. The company uses the FIFO method
|
|
Determine the ending merchandise inventory
: Determine the ending merchandise inventory and cost of goods sold amounts for the October financial statements using the FIFO and LIFO
|
|
What is stan realized gain on the sale
: Sale of Property Received as a Gift. During the current year, sells a tract of land for $800,000. What is Stan realized gain on the sale
|
|
What would you choose as a base and why
: Materiality for the engagement: what would you choose as a base and why? What factor would you use and why
|
|
Prepare the bottom portion of pearl income statement
: Prepare the bottom portion of Pearl's 2018 income statement, beginning with "Income from continuing operations before income taxes
|
|
What are expected profits
: If total revenue in 2020 is expected to be $1,797,093, what are expected profits in 2020 [round the CM or CM rate to two decimal places]
|