Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its...

70.2K

Verified Solution

Question

Accounting

Scoresby Inc. tracks the number of units purchased and soldthroughout each year but applies its inventory costing method atthe end of the year, as if it uses a periodic inventory system.Assume its accounting records provided the following information atthe end of the annual accounting period, December 31.
Â Â
Transactions Units Unit Cost
a. Inventory, Beginning 1,500 $ 26
For the year:
b. Purchase, March 5 7,500 27
c. Purchase, September 19 3,500 29
d. Sale, April 15 (sold for $71 per unit) 2,300
e. Sale, October 31 (sold for $74 per unit) 6,500
f. Operating expenses (excluding income tax expense),$402,000
Prepare an income statement that shows the FIFO method, LIFOmethod and weighted average method.
SCORESBY INC.
Income Statement
For the Year Ended December 31
FIFO LIFO Weighted Average
Income (Loss) fromOperations

Answer & Explanation Solved by verified expert

4.1 Ratings (629 Votes)

All working forms part of the answer Requirement asked Income Statements Answer FIFO LIFO Weighted Average Method Sales Revenue 64430000 64430000 64430000 Cost of Goods Sold as calculated below 23610000 24460000 24147200 Gross Profits 40820000 39970000 40282800 Operating Expenses 40200000 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member