User Account

All Pages

Monitors ending inventory using the lifo method was 8200

Assignment Help Accounting Basics
Reference no: EM13567455

Monitor Company uses the LIFO method for valuing its ending inventory. The following financial statement information is available for its first year of operation:

Income Statement

For the year ended Dec 31

Sales                                  50,0000

Cost of goods sold             23,000

Gross profit                        27,000

Expenses                           13,000

Income before taxes           14,000

Monitor's ending inventory using the LIFO method was $8,200. Monitor's accountant determined that, had the company used FIFO, the ending inventory would have been $8,500.

a)Determine what the income before taxes would have been, had Monitor used the FIFO method of inventory valuation instead of LIFO.

b)What would be the difference in income taxes between LIFO and FIFO, assuming a 30% tax rate?

c)If Monitor wanted to lower the amount of income taxes to be paid, which method would it choose?

Reference no: EM13567455

Questions Cloud

Cochrane inc is considering a new three-year expansion : cochrane inc. is considering a new three-year expansion project that requires an initial fixed asset investment of
You own a share portfolio invested 25 in shares of q 20 in : you own a share portfolio invested 25 in shares of q 20 in shares in r 45 in shares in s and 10 in shares in t. the
Hamilton company manufactures engines hamilton produces all : hamilton company manufactures engines. hamilton produces all the parts necessary for its engines except for one
Bommer ltd has just paid a dividend of 240 per share on : bommer ltd has just paid a dividend of 2.40 per share on its ordinary shares. the company is expected to maintain a
Monitors ending inventory using the lifo method was 8200 : monitor company uses the lifo method for valuing its ending inventory. the following financial statement information is
You have 100 000 to invest in a portfolio containing share : you have 100 000 to invest in a portfolio containing share x and share y. your goal is to create a portfolio that has
Describe the importance of local regional and bioregional : describe the importance of local regional and bioregional community development in terms of cultural-spiritual
What is the total estimated direct labor cost for july : morganton company makes one product and it provided the following information to help prepare the master budget for its
Pick two films that we watched in class from the three : film questionspick two films that we watched in class from the three choices below and answer the following questions

Reviews

Write a Review

Accounting Basics Questions & Answers

  Cost of the house-hunting trip

She located a home and moved into it in April. Margaret's employer reimbursed her for all direct costs of moving to Atlanta in addition to the cost of the house-hunting trip.

  Consulting and tax planning services

An accounting firm, provides consulting and tax planning services. A recent analysis found that 55% of the firm's billable hours to clients resulted from tax planning and for many years, the firm's total administrative cost (currently $270,000) ha..

  Did the accountant record the transaction correctly

Cheap Toys sells merchandise to the general public for cash or credit. It accepts several major credit cards. The company pays an average fee of 4% of sales to the credit card companies and 6% to the State of Florida in sales taxes.

  Contemporary trends in global value chain management

Illustrate out the some contemporary trends in global value chain management? How does the use of a global monetary unit (e.g., Euro or single currency) affect global value chain management?

  In which system should the firm invest

Net present value: Blanda Incorporated management is considering investing in two alternative production systems. The systems are mutually exclusive.

  Compute 2 breakeven point in units of product 2 even point

a company produces only one product. normal capacity is 0000 units per year and the unit sales price is rs.5 relevant

  Compute for the companys break-even point in unit sales

maxson products distributes a single product a woven basket whose selling price is 8 and whose variable cost is 6 per

  Net deferred income taxes

Assuming the lawsuit was resolved in February of 2012 (at which time a $200,000 loss was recognized for tax purposes) and that Begal's tax rate is 30 percent for both 2011 and 2012, what amount should Begal report as asset for net deferred income ..

  Amount of warranty expense

As a result of these transactions, what is the amount of warranty expense for the year and what is the ending balance in Warranty Payable.

  Prepare data flow diagrams and system flowcharts

Prepare data flow diagrams and system flowcharts of the current transaction processing system and identify the control weakness in the current system using the COSO format.

  Calculate the amount of inventory loss from the fire

Calculate the amount of inventory loss from the fire.

  Hue company employs the perpetual inventory system and

hue company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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