Task: Inventory Methods: Park Company Exercise
Problem:
Park Company reported the following March purchases and sales data for its only product:
| Date |
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Activities |
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Units Acquired at Cost |
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Units Sold at Retail |
| March 1 |
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Beginning Inventory |
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160 |
units @ |
$7.20 |
= |
$1,152 |
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| March 10 |
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Sales |
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95 |
units @ |
$15.20 |
| March 20 |
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Purchase |
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230 |
units @ |
$6.20 |
= |
1,426 |
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| March 25 |
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Sales |
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155 |
units @ |
$15.20 |
| March 30 |
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Purchase |
|
100 |
units @ |
$5.20 |
= |
520 |
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Totals |
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490 |
units |
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$3,098 |
|
250 |
units |
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Park uses a perpetual inventory system. For specific identification, ending inventory consists of 240 units, where 100 are from the
March 30 purchase, 80 are from the March 20 purchase, and 60 are from beginning inventory.
Requirement:
Complete comparative income statements for the month of March for Park Company for the four inventory methods. Assume expenses are $1,700, and that the applicable income tax rate is 35%.(Round per unit costs to three decimal places. Round your answers to the nearest dollar amounts. Input all amounts as positive values. Omit the "$" sign in your response.)
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| PARK COMPANY |
| Income Statements |
| For the Month Ended: March 31, 20XX |
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Specific |
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Weighted |
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Identification |
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Average |
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FIFO |
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LIFO |
| Sales |
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| Cost of Goods Sold |
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| Gross Profit |
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| Expenses |
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| Income Before Taxes |
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| Income Tax Expense |
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| Net Income |
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