Prepare comparative condensed income statements

Assignment Help Financial Accounting
Reference no: EM131222615

Management of Tinker Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2014, the accounting records show these data. Inventory, January 1 (10,000 units) $ 35,000 Cost of 120,000 units purchased 474,740 Selling price of 98,600 units sold 757,500 Operating expenses 129,500 Units purchased consisted of 34,200 units at $3.80 on May 10; 60,400 units at $3.90 on August 15; and 25,400 units at $4.30 on November 20. Income taxes are 30%. (a) Prepare comparative condensed income statements for 2014 under FIFO and LIFO.

Reference no: EM131222615

Questions Cloud

Consideration transferred and the fair value of net assets : How do you get the Fair Value of Consideration Transferred and the Fair Value of Net Assets acquired of Chapter 2, problem 26? I am trying to understand how to calculate the bargain purchase amount. It is the first step. It is the Advanced Accounting..
Colleague presents the team with two alternative cash flows : You are in a meeting and a colleague presents the team with two alternative cash flows -- your boss wants to know what the difference is in present value in order to make a decision -- you tell her. The difference is about $110K, choose A.  We cannot..
The administrator of the orthopedic center : The administrator of the orthopedic center estimated that the center will average 4,400 patient days per month. If the center is to be operated as a nonprofit organization, determine the amount it will need to charge per patient day?
Record transactions for olivias maintenance services : Eli owns an insurance office, while Olivia operates a maintenance service that provides basic custodial duties. For the month of May, the following transactions occurred. May 2 Olivia decides that she will need insurance for a one-day special event a..
Prepare comparative condensed income statements : Management of Tinker Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2014, the accounting records show these data. Prepare comparative condensed income statements for 2014 under FIFO an..
Request an automatic extension of time to file his return : William did not file his 2015 federal individual income tax return that was due on April 15, 2016 until June 15, 2016. William did not request an automatic extension of time to file his return. When does the statute of limitations expire on William’s..
Prepare entry that the parent makes to record the investment : A parent company acquires all of the outstanding common stock of its subsidiary for a cash purchase price of $265,000. On the acquisition date, the subsidiary reported $60,000 for Common Stock and $45,000 for Retained Earnings. Prepare the entry that..
Federal individual income tax return : Katherine filed her 2015 federal individual income tax return on April 15, 2016. It showed Katherine owed a balance due of $8,500. Katherine included a check for $1,000 when she filed her federal individual tax return, but she will not pay the remain..
Calculate the effect of change in the assumed discount rate : Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2002 and is expected to ret..

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  What point will the inventory be transferred

Why do you think that this amount is not shown in a separate inventory account? In which of the accounts shown is the inventory likely to be? At what point will the inventory be transferred to a separate inventory account?

  Calculate the full cost per unit for each product

Calculate the full cost per unit for each product under traditional costing method, using direct labor hours as the basis for appointment.

  Current economic conditions and individual operating results

Given current economic conditions and individual operating results, companies may not comply fully with lender restrictions on debt and, thus, fail to meet one of the debt covenant requirements. What audit procedures are needed for Sunshine, CPA, to ..

  Compute bert and barbaras net tax

Bert and Barbara have $14,000 of itemized deductions. Compute Bert and Barbara's net tax due, including self-employment tax. Assume dividends are taxed at ordinary rates.

  Job order cost accounting system

Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $6,000,000 (600,000 hours at $10/hour) and that factory overhead would be $3,900,000 for the current period. At the end of the perio..

  Recently received a special-order inquiry

Two months ago, Victory Corporation purchased 5,500 pounds of Hydrol, paying $18,700. The demand for this product has been very strong since the acquisition, with the market price jumping to $4.05 per pound. (Victory can buy or sell Hydrol at this pr..

  Multiple choice questions related to basic1in order to

multiple choice questions related to basic1.in order to impose secondary liability the following requirements must be

  Book value-double-declining-balance method

On January 1, 2015, Paulson Transport Company purchased a ship for $2,000,000. It has a ten-year useful life and a residual value of $50,000. The company uses the double-declining-balance method. What was the book value of the ship for Paulson Transp..

  Determine the cost of the finished goods inventory

What is the likely effect on the $4.50 unit cost of direct materials if next year's production increases? Why?

  Red report as net cash outflows from investing activities

In preparing its cash flow statement for the year ended December 31, 2016, Red Co. gathered the following data: Gain on sale of land $12,000 Proceeds from sale of land 20,000 Purchase of Blue, Inc., In its December 31, 2016, statement of cash flows, ..

  Capital investment project to satisfy suppliers of capital

What would be the minimum expected return from a new capital investment project to satisfy the suppliers of the capital? Assume the applicable tax rate is 40%, interest on debt is 7%, flotation cost per share of preferred stock is $0.75, and flotatio..

  Identify a current controversy in accounting in australia

BBAC502 - Assignment Identify a current controversy in Accounting in Australia and demonstrate your understanding of the issue

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd