Exercise 6-4 Income effects of inventory methods L.O. A1 P

Exercise 6-4 Income effects of inventory methods L.O. A1 Park uses a perpetual inventory system. For specific identification ending inventory consists of 225 units where 90 are from the March 30 purchase 80 are from the March 20 purchase and 55 are frombeginning inventory. Complete comparative income statements for the month of March for Park Company for the four inventory methods. Assume expenses are $1600 and that the applicable income tax rate is 30%.(Round per unit costs to three decimal places.Round your answers to the nearest dollar amounts. Input all amounts as positive values. Omit the $ sign in your response.) Income Statements For Month Ended March 31 Identification Average Which method yields the highest net income? Does net income using weighted average fall between that using FIFO and LIFO? If costs were rising instead of falling which method would yield the highest net income? Specific identification roblem 6-1A Alternative cost flows-perpetual L.O. P1 [The following information applies to the questions displayed below.] 3.00 points Problem 6-1A Part 1 Compute cost of goods available for sale and the number of units available for sale.(Omit the $ sign in your response.) 3.00 points Problem 6-1A Part 2 3.00 points Problem 6-1A Part 3 Compute the cost assigned to ending inventory using(a)FIFO(b)LIFO(c)weighted average and(d)specific identification. For specific identification the March 9 sale consisted of 40 units from beginning inventory and 170 units from the March 5 purchase; the March 29 sale consisted of 20 units from the March 18 purchase and 60 units from the March 25 purchase.(Due to rounding the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round your weighted average cost to 3 decimal places. Round your final answers to nearest whole dollar amount. Omit the $ sign in your response.) Inventory rev: 12_18_2012 3.00 points Problem 6-1A Part 4 Compute gross profit earned by the company for each of the four costing methods.(Round your per unit costs to 3 decimal places and inventory balances and final answer to the nearest dollar amount. Omit the $ sign in your response.) Problem 6-4A Analysis of inventory errors L.O. A2 Doubletree Companys financial statements show the following. The company recently discovered that in making physical counts of inventory it had made the following errors: Inventory on December 31 2010 is understated by $50000 and inventory on December 31 2011 is overstated by $20000. For each key financial statement figure(a) (b) (c) and (d) aboveprepare a table to show the adjustments necessary to correct the reported amounts.(Amounts to be deducted should be indicated with a minus sign. Leave no cells blank – be certain to enter 0 wherever required. Omit the $ sign in your response.) What is the error in total net income for the combined three-year period resulting from the inventory errors?(Leave no cells blank – be certain to enter 0 wherever required. Input your answer as a positive value. Omit the $ sign in your response.) Problem 6-5AA Alternative cost flows-periodic L.O. P3 [The following information applies to the questions displayed below.] Viper Company began year 2011 with 20000 units of product in its January 1 inventory costing $15 each. It made successive purchases of its product in year 2011 as follows. The company uses a periodic inventory system. On December 31 2011 a physical count reveals that 35000 units of its product remain in inventory. 4.00 points Problem 6-5AA Part 1 4.00 points Problem 6-5AA Part 2 Compute the amounts assigned to the 2011 ending inventory and the cost of goods sold.(Input all amounts as positive values. Round per unit costs to 3 decimal places. Round your finalanswers to the nearest dollar amount. Omit the $ sign in your response.)

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