What will he the difference between the two methods

Assignment Help Financial Accounting

Reference no: EM131264931

A gasoline distributor had 100,000 gallons of gasoline valued at $2.80/gallon. They bought 100,000 more gallons at $2.60/gallon, and subsequently 100,000 more gallons at $2.90 each. After that, they sold 150,000 gallons at $3.10 each. Their selling and administrative expenses are $12,000 and their tax rate is 20%. Will they pay more taxes if they value their inventory using FIFO or LIFO, and what will he the difference between the two methods?

Reference no: EM131264931

Questions Cloud

What is the total cost of job : In June, Sierra Company worked only on Job No. 100 and completed it on June 30. There were no prior costs accumulated on Job No. 100 before June 1. During the month, the company purchased and used $10,800 of direct materials, used 2,000 machine-hours..

Difference between true bank balance and true book balance : The accountant who usually does bank reconciliations is on vacation, and the bank statement just came in the mail. Your boss wants you to do the bank reconciliation. Prepare the bank reconciliation, so your boss will have one more reason to make sure..

Bad debt adjustment on the before-tax income : Chatter Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Chatter’s accounts receivable account is $556,000, and the allowance for doubtful accounts has a debit balance of $5,000. W..

Contribution margin for under variable costing approach : A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: The total contribution margin for the month under the variable costing approach is:

What will he the difference between the two methods : A gasoline distributor had 100,000 gallons of gasoline valued at $2.80/gallon. They bought 100,000 more gallons at $2.60/gallon, and subsequently 100,000 more gallons at $2.90 each. After that, they sold 150,000 gallons at $3.10 each. Will they pay m..

What is unit product cost for month under variable costing : A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under variable costing?

What is unit product cost for month under absorption costing : A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under absorption costing?

Differ from the process for creating sales journal : The Trailspan Travel Club markets travel books across the United States and Canada. Members of the travel club place orders online through Trailspan’s website, over the phone by calling an 800 number, or by mail. Online orders are entered into the cl..

How much is the break-even point in units : ABC Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. ABC expects to produce and sell 60,000 units at a price of $20 per unit. How much is the break-even point in units..

User Account

All Pages