Ending inventory and cost of goods sold

Reference no: EM13257663

Cyclone Co. uses the periodic inventory system. The following information about their inventory of Model XX Mountain Bicycles is available: please show work

Date	Transaction	Number of Units	Cost per Unit
1/1	Beginning Inventory	50	$800
4/12	Purchase	80	$820
7/8	Purchase	75	$840
9/22	Purchase	90	$850

During the year, 235 bicycles were sold at a price of $1,500 each. Other operating costs equaled $80,000 and their tax rateis 30%. Round final answers to the nearest dollar.

a) What was ending inventory and cost of goods sold on 12/31 under the FIFO cost flow assumption?

b) What was ending inventory and cost of goods sold on 12/31 under the LIFO cost flow assumption?

c) What was ending inventory and cost of goods sold on 12/31 under the weighted average cost flow assumption?

d) How much is gross margin under the FIFO method for the year ended 12/31?

e) How much is income tax expense under the LIFO method as of12/31?

f) How much tax is saved using LIFO instead of FIFO costing asof 12/31?

Reference no: EM13257663

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