Solution-Determine the gross profit for each year

Determine the gross profit for each year

Reference no: EM132882804

Problem - Alternative Inventory Methods - Habicht Company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows:

	Production		Sales
	Units	Total Costs	Units	Sales Revenue	Units in Ending Inventory
2018	100,000	$200,000	80,000	$400,000	20,000
2019	120,000	234,000	110,000	550,000	30,000
2020	130,000	247,000	150,000	750,000	10,000
2021	130,000	240,500	120,000	600,000	20,000

Required -

1. Determine the gross profit for each year under each of the following periodic inventory methods:

a. FIFO

b. LIFO

c. Average cost (Round unit costs to 3 decimal places.)

2. Explain whether the company's return on assets (net income divided by average total assets) would be higher under FIFO or LIFO.

Reference no: EM132882804

Questions Cloud

Aspects of organizational culture : What aspects of organizational culture should you take into consideration when you are making decisions?

Compute the ending inventory and the cost of goods sold : Compute the ending inventory and the cost of goods sold under the LIFO cost flow assumption assuming both a perpetual and a periodic inventory system

Think about the worst job you have held : Think about the worst job you have held. What approach to motivation was used in that organization? Now think about the best job you have held.

What were the firm budgeted collections for june : If sales for April, May, and June were $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections for June?

Determine the gross profit for each year : Problem - Alternative Inventory Methods - Habicht Company was formed in 2018 to produce a single product. Determine the gross profit for each year

How do you define corporate governance : How do you define corporate governance? Why do you think this concept has been of increasing interest in recent years? Or has it?

Proof of Concept Linux Virtual Network Project : Proof of Concept Linux Virtual Network Project - Develop professional system administrators, capable of maintaining modern business IT architectures

How did google merger with android affect the hr department : How did Google's merger with Android affect the hr department. More specifically the training and development of the employees?

What was the real return of the year : The long-term Government Bond is 14.45. U.S. Treasury Bill is 4.86. Consumer Price Index is 1.61. What was the real return of this year?

User Account

All Pages

Determine the gross profit for each year

Reference no: EM132882804

Reference no: EM132882804

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

Uploaded imagean aging schedule for accounting

The number of pounds of matierials a and b required for

Calculate the present value of a stream of income when

Two examples where historical cost information is reported

What is the balance in Retained Earnings at the end of year

Jordan kyle and noah have equities in a partnership of

Weighted mean price of a book-weighted mean hourly wage

Determine the average inventory and orders per year

What is marginal rate if had of additional deductions

What the balance of the accumulated depreciation account

Discuss what are the effects of socio economic factors

Discrepancies between ifrs and u.s. gaap

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT