Use the data in Exercise 6-3 to prepare comparative income statements for the month of January…

Module 5 General Psychology
June 29, 2020
Assignment 3: Capstone Research Project
June 29, 2020

Use the data in Exercise 6-3 to prepare comparative income statements for the month of January…

Use the data in Exercise 6-3 to prepare comparative income statements for the month of January for Park Company similar to those shown in Exhibit 6.8 for the four inventory methods. Assume expenses are $1,600, and that the applicable income tax rate is 30%.

1. Which method yields the highest net income?

2. Does net income using weighted average fall between that using FIFO and LIFO?

3. If costs were rising instead of falling, which method would yield the highest net income?

Exercise 6-3

Park Company reported the following March purchases and sales data for its only product.

Park uses a perpetual inventory system. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO. (Round per unit costs to three decimals, but inventory balances to the dollar.) For specific identification, ending inventory consists of 225 units, where 90 are from the March 30 purchase, 80 are from the March 20 purchase, and 55 are from beginning inventory.

 

 

Submit Your Assignment and get professional help from our qualified experts!


Use the data in Exercise 6-3 to prepare comparative income statements for the month of January… was first posted on June 29, 2020 at 12:29 pm.
©2019 "Submit Your Assignment". Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at support@nursingtermpaper.org

 

"Is this question part of your assignment? We Can Help!"

Essay Writing Service