E7-8 (Algo) Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3] Orion Iron Corporation tracks the number of units purchased and sold...


E7-8 (Algo) Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3]



Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.















































TransactionsUnitsUnit Cost

a. Inventory, Beginning		400$ 15
For the year:

b. Purchase, April 11		85013

c. Purchase, June 1		75017

d. Sale, May 1 (sold for $43 per unit)		400

e. Sale, July 3 (sold for $43 per unit)		510

f. Operating expenses (excluding income tax expense), $18,900



Required:




  1. 1.Calculate the number and cost of goods available for sale.


  2. 2.Calculate the number of units in ending inventory.


  3. 3. Compute the cost of ending inventory and cost of goods sold under(a) FIFO,(b) LIFO, and(c) weighted average cost.


  4. 4.Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method.


  5. 6.Which inventory costing method minimizes income taxes?




Required 1<br>Required 2<br>Required 3<br>Required 4<br>Required 6<br>Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted<br>round intermediate calculations. Round your final answers to the nearest dollar amount.)<br>Cost of Ending<br>Inventory<br>Cost of Goods<br>Sold<br>FIFO<br>LIFO<br>Weighted Average Cost<br>

Extracted text: Required 1 Required 2 Required 3 Required 4 Required 6 Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted round intermediate calculations. Round your final answers to the nearest dollar amount.) Cost of Ending Inventory Cost of Goods Sold FIFO LIFO Weighted Average Cost
Required 1<br>Required 2<br>Required 3<br>Required 4<br>Required 6<br>Prepare an Income Statement that shows under the FIFO method, LIFO method and weighted average m<br>ORION IRON CORPORATION<br>Income Statement<br>For the Year Ended December 31<br>Weighted<br>Average<br>FIFO<br>LIFO<br>Income from operations<br>

Extracted text: Required 1 Required 2 Required 3 Required 4 Required 6 Prepare an Income Statement that shows under the FIFO method, LIFO method and weighted average m ORION IRON CORPORATION Income Statement For the Year Ended December 31 Weighted Average FIFO LIFO Income from operations
Jun 10, 2022
SOLUTION.PDF
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Have files?