50.1K

Verified Solution

Link Copied!

The following information pertains to the inventory of Parvin Company for Year 3: Beginning inventory 400 units @ $16 Purchased 2,500 units @ $21 Purchased 1,100 units @ $22 January 1 April 1 October 1 During Year 3, Parvin sold 3,400 units of inventory at $41 per unit and incurred $17,900 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $49,100, inventory of $6,400, common stock of $31,000, and retained earnings of $24,500. Required a. Prepare income statements using FIFO and LIFO. Note: Round intermediate calculations and final answers to the nearest whole dollar amount. PARVIN COMPANY Income Statements For the Year Ended December 31, Year 3 FIFO Income before tax 0 LIFO 0

The following information pertains to the inventory of Parvin Company for Year 3 : January1April1October1Beginninginventory400unitse$16Purchased2,500units$21Purchased1,100unitse$22 During Year 3, Parvin sold 3,400 units of inventory at $41 per unit and incurred $17,900 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $49,100, inventory of $6,400, common stock of $31,000, and retained earnings of $24,500. Required a. Prepare income statements using FIFO and LIFO. Note: Round intermediate calculations and final answers to the nearest whole dollar amount

Answer & Explanation Solved by verified expert

See Answer