Problem:
Purchases: July 15
5500 units
$9.00 per unit
November 12 Spark Company's inventory records show the following data
Inventory, January 1, 2013
6,000 units
$10.00
3500 units
$8.00 per unit
A physical inventory on December 31 2013 shows 4,000 units on hand. Spark sells the units for $18 each. The company has an effective tax rate of 20%. Spark uses the periodic inventory method.
Under the FIFO method, calculate ending inventory at Dec 31st 2013, cost of goods sold and present statement of income for the period ended 31st December 2013 in the proper form.