Problem
The following data was obtained from the records of ABC Inc., for the current year. Sales during the year were 198 units. Work must be shown.
|
Jan 1, 2021
|
Beginning Inventory
|
80 units at $8
|
|
Jan 11, 2021
|
Purchases
|
65 units at $10
|
|
Jan 23, 2021
|
Purchases
|
55 units at $ 12
|
|
January 31
|
Purchases
|
53 units at $14
|
Calculate the cost of the ENDING INVENTORY and the COST OF GOODS SOLD using:
i. FIFO
ii. LIFO
iii. Average Cost to two decimal places.
If the tax rate is 30%, how much in taxes will ABC save in the current year if they choose to use LIFO instead of FIFO? Show calculations.