Prepare a partial income statement for each inventory

Reference no: EM13591670

Two Wheels operates on a fiscal year beginning January 1. At the beginning of the year, the shop had 6 bicycles @$394 each (opening inventory). During the year the business made the following purchases:

Date Bicycle Cost
Jan.20 4 $399
Mar. 5 5 $415
Apr. 23 7 $419
Aug. 14 4 $423
Oct. 3 6 $430
Nov. 17 3 $435

There were seven bicycles in inventory at the end of the period. During the year, the bicycles were sold for $675 each.

Instructions:
Calculate the cost of the ending inventory using the FIFO, LIFO, and weighted average cost methods.
Prepare a partial income statement for each inventory costing method showing the sales and the calculation of gross profit on sales.
Assume that the sales and purchases are net amounts.

Reference no: EM13591670

Questions Cloud

Minden companys required rate of return is 10 the company : 1.minden companys required rate of return is 10. the company can purchase a new machine at a cost of 40500. the new

Grisson companys costs for the month of august were as : grisson companys costs for the month of august were as follows direct materials 27000 direct labor 34000 selling 14000

The srane company has contacted trell with an offer to : the srane company has contacted trell with an offer to sell it 5000 wickets for 36 each. if trell makes the wickets

Reed merchandising company expects to purchase 90000 of : reed merchandising company expects to purchase 90000 of materials in july and 105000 of materials in august.

Prepare a partial income statement for each inventory : two wheels operates on a fiscal year beginning january 1. at the beginning of the year the shop had 6 bicycles 394 each

How many photons are striking each cm2 in 10 minute assume : question a radiation detector exposed to sunlight records the energy falling on a given area each minute. the detector

A company has a process that results in 15000 pounds of : a company has a process that results in 15000 pounds of product x that can be sold for 8 per pound. an alternative

Silicon carbide which has the emperical formula sic melts : silicon carbide which has the emperical formula sic melts at 2830 deg c. and is nearly as hard as boron nitride and

What is the side reaction that occurs or what side products : question what is the side reaction that occurs or what side products are generated during a thiamine catalyzed benzoin

User Account

All Pages