Cyclone Co. uses the periodic inventory system. The following information about their inventory of Model XX Mountain Bicycles is available: please show work
Date
|
Transaction
|
Number of Units
|
Cost per Unit
|
|
1/1
|
Beginning Inventory
|
50
|
$800
|
|
4/12
|
Purchase
|
80
|
$820
|
|
7/8
|
Purchase
|
75
|
$840
|
|
9/22
|
Purchase
|
90
|
$850
|
During the year, 235 bicycles were sold at a price of $1,500 each. Other operating costs equaled $80,000 and their tax rateis 30%. Round final answers to the nearest dollar.
a) What was ending inventory and cost of goods sold on 12/31 under the FIFO cost flow assumption?
b) What was ending inventory and cost of goods sold on 12/31 under the LIFO cost flow assumption?
c) What was ending inventory and cost of goods sold on 12/31 under the weighted average cost flow assumption?
d) How much is gross margin under the FIFO method for the year ended 12/31?
e) How much is income tax expense under the LIFO method as of12/31?
f) How much tax is saved using LIFO instead of FIFO costing asof 12/31?