Reference no: EM133105806

Question 1 - The following information relates to Exeter Incorporation's Inventory purchases and sales data, for the year ended 2021:

Beginning Inventory 800 units @$16 each

January 10 Purchase 1000 units @ $14.5 each

February 15 Sales 1800 units @ $80 each

February 15 Sales Return 100 units @ $80 each

February 27 Purchase 2000 units @ $14 each

July 31 Purchase Return 250 @ $15 each

July 15 Purchase 1500 units@ $13 each

July 31 Purchase 500 @ $15 each

May 31 Sales 1100 units @ $85 each

November 5 Sales 1250 @ $85 each

December 30 Sales 1050 @ $85 each

Required - Calculate the value of ending inventory on 31 December 2021 and the value of Cost of Goods sold using the following methods (Assume that the company used periodic inventory system):

i. FIFO

ii. LIFO

Question 2 - Several other transactions took place within Exeter Incorporation is the year 2021:

During the year, Exeter Incorporation paid salaries of $148,000.

Exeter Corporation sold all the inventories under the term FOB Destination and paid a total of $3,500 delivery cost, for the entire year.

Depreciation Expense for the year was $18,900.

On November 1, 2021, Exeter Company sold an old machinery for $5,000. The actual cost of the asset is $50,000 and the accumulated deprecation on November 1 was $43,900.

On December 1, 2021, Exeter Company had to pay a parking fine of $145.

Required - Prepare the Multiple-step Income Statement (Assume that Exeter Incorporation uses FIFO method for it's inventory valuation).