The BooksteinCompany began business on 1/1/2016 when they sold 5000 shares of stock for $46,000 During 2016 Bookstein: a)...

60.1K

Verified Solution

Question

Accounting

TheBooksteinCompany began business on 1/1/2016 when they sold 5000shares of stock for $46,000
During 2016 Bookstein:
a) on 1/13/2016 Bookstein purchased 100 books for$14 each
b) on 7/1/2016 Bookstein purchased 400 books for$15 each
c) On 10/1/2016 Bookstein purchased 300 books for$16 each
On December 31, 2016 a count of the warehouseshowed 270 books
On average Bookstein sold books for $23 each
At the end of the year Booksteinhad no receivablesor payables.
Booksteinis in the 40% tax rate
PART 1: FOR 2016DETERMINE
A) COST OF GOODS SOLD FOR BooksteinIF SHE USESFIFO
B) ENDING INVENTORY FOR BooksteinIF SHE USESFIFO
C) NET INCOME IF Bookstein USES FIFO (DON'T FORGETABOUT TAXES)
D) ENDING CASH IF Bookstein USES FIFO
E) COST OF GOODS SOLD FOR BooksteinIF SHE USESLIFO
F) ENDING INVENTORY FOR BooksteinIF SHE USESLIFO
G) NET INCOME IF BooksteinUSES LIFO (DON'T FORGETABOUT TAXES)
H) ENDING CASH IF MARY POPPINTS USES LIFO
I) HOW MUCH DID BooksteinSAVE BY USING LIFO INSTEADOF FIFO FOR HER UMBRELLAS

Answer & Explanation Solved by verified expert

3.7 Ratings (329 Votes)

In FIFO method stock purchased first sold first hence ending inventor always include stock from last purchases a Cost of Goods Sold in FIFO 100 14 400 15 300270 16 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

TheBooksteinCompany began business on 1/1/2016 when they sold 5000shares of stock for $46,000
During 2016 Bookstein:
	a) on 1/13/2016 Bookstein purchased 100 books for$14 each
	b) on 7/1/2016 Bookstein purchased 400 books for$15 each
	c) On 10/1/2016 Bookstein purchased 300 books for$16 each

	On December 31, 2016 a count of the warehouseshowed 270 books
	On average Bookstein sold books for $23 each
	At the end of the year Booksteinhad no receivablesor payables.
	Booksteinis in the 40% tax rate

PART 1: FOR 2016DETERMINE
		A) COST OF GOODS SOLD FOR BooksteinIF SHE USESFIFO
		B) ENDING INVENTORY FOR BooksteinIF SHE USESFIFO
		C) NET INCOME IF Bookstein USES FIFO (DON'T FORGETABOUT TAXES)
		D) ENDING CASH IF Bookstein USES FIFO
		E) COST OF GOODS SOLD FOR BooksteinIF SHE USESLIFO
		F) ENDING INVENTORY FOR BooksteinIF SHE USESLIFO
		G) NET INCOME IF BooksteinUSES LIFO (DON'T FORGETABOUT TAXES)
		H) ENDING CASH IF MARY POPPINTS USES LIFO
		I) HOW MUCH DID BooksteinSAVE BY USING LIFO INSTEADOF FIFO FOR HER UMBRELLAS