2024 – Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory The company began 2013 with
Cansela Corporation Uses A Periodic Inventory System And The LIFO Method To Value Its Inventory. The Company Began 2013 With Inventory Of 6,900 Units Of Its Only Product. The Beginning Inventory Balance Of $105,700 – 2024
Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2013 with inventory of 6,900 units of its only product. The beginning inventory balance of $105,700 consisted of the following layers:
| 2,900 units at $13 per unit | = | $ | 37,700 | |
| 4,000 units at $17 per unit | = | 68,000 | ||
| $ | 105,700 | |||
|
During the three years 2013–2015 the cost of inventory remained constant at $19 per unit. Unit purchases and sales during these years were as follows: |
| Purchases | Sales | |||||
| 2013 | 23,500 | 24,500 | ||||
| 2014 | 31,000 | 34,000 | ||||
| 2015 | 25,500 | 26,900 | ||||
| Required: |
| 1. | Calculate cost of goods sold for 2013, 2014, and 2015. | |
| 2. |
Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for each of the three years. |
|
| 3. |
Determine the effects of LIFO liquidation on cost of goods sold and net income for 2013, 2014, and 2015. Cansela’s effective income tax rate is 45%. |
|
Need assignment writing services that are 100% risk-free. Our writers are capable of providing the best assignment help to students in globally at best rates.
Assignment online is a team of top-class experts whose only goal is to give you the best assignment help service. Follow the link below to order now...
#write essay #research paper
