Inventory costing methods of fifo-lifo and weighted average


Q1) SVC Corp. sold 6,800 units of its product at $80 per unit in year 2008 and acquired operating expenses of $3 per unit in selling units. It began year with 750 units in inventory and made consecutive purchases of its product as follows:

 Jan.   1   Beg. inventory           750 units @ $22 per unit

Feb. 18    Purchase                2,600 units @ $24 per unit

Apr. 16    Purchase                   300 units @ $26 per unit

Oct.  8      Purchase                 1, 500 units @ $28 per unit

Dec. 21   Purchase                 2,200 units @ $30 per unit

                                            __________

             Total                         7,350 units

Required:

Make comparative income statements for company similar for three different inventory costing methods of FIFO, LIFO, and weighted average. Comprise detailed cost of goods sold section as part of each statement. Company utilizes periodic inventory system, and its income tax rate is 30%.

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Accounting Basics: Inventory costing methods of fifo-lifo and weighted average
Reference No:- TGS016539

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