41) The following data was obtained from the records of Brankovich Tool and Die, Inc., for the current year:
Jan. 1
|
Beginning Inventory
|
110 units at $10
|
February 1
|
Purchase
|
200 units at $12
|
April 1
|
Purchase
|
100 units at $14
|
July 1
|
Purchase
|
80 units at $16
|
Round all calculations to two decimal places. The company sold 200 units during the year. Sales for the year are $70,000; operating expenses are $20,000; and the tax rate is 40%.
Required:
Using the multiple-step format, prepare the income statement using:
1. FIFO
2. LIFO
3. Average cost
42) The units of inventory available for sale during the month of June were as follows:
June 1
|
Beginning Inventory
|
60 units at $40
|
June 15
|
Purchase
|
40 units at $30
|
June 22
|
Purchase
|
20 units at $20
|
There are 20 units of inventory at June 30. Round all calculations to two decimal places.
Required: Determine the ending inventory using:
1. FIFO
2. LIFO
3. Average-cost method
43) Carboni Company had the following data available for the current month:
Beginning Inventory
|
10 units
|
$55 per unit
|
Purchase #1
|
30 units
|
$60 per unit
|
Purchase #2
|
25 units
|
$65 per unit
|
Assume 40 units were sold during the month. Sales Revenue for the month is $7,000 and operating expenses are $2,200. The income tax rate is 30%.
Required:
1. Compute Cost of Goods Sold using:
a. FIFO
b. LIFO
2. How much would Carboni Company save in income taxes if they used LIFO instead of FIFO?