P6.4 (LO 2) Writing The management of Gisel Group is reevaluating the appropriateness of using its p

P6.4 (LO 2) Writing The management of Gisel Group is reevaluating the appropriateness of using its p

P6.4 (LO 2) Writing The management of Gisel Group is reevaluating the appropriateness of using its present inventory cost flow method. They request your help in determining the results of operations for 2020 if either the FIFO method or the average-cost method had been used. For 2020, the accounting records show the following data. Purchases and Salesile Beginning (10,000 units) 22,800 Total net sales (225,000 units) n865,000 Cs dTotal cost of goods purchased oib doidw bMo aboog to en wot o(230,000 units)omsid oo 578,500 Purchases were made quarterly as follows. og abnomeid 03nD bluow tog og doum wolH ETEVS S u abromail og ad omuz2A pow ñoTotal CostwoH blo 60,000 oo 2.30 009n138,000m doiW b Inventories urch Ending (15,000 units) Unit Cost noi Quarter zid Units coa yoW 22btouCrcp cot o Boo 20 50,000 2.50 125,000 2 25 3 2.60 50,000 130,000 wg s gainin4sb ni qlod w70.000i 1obu 2.65mganam o 185.500 (s a r to 2o ovi tebor obivon latnyo od O5oto20 000 nsvni 0-9govs €578,500 Determine Operating expenses were 147,000, and the company's income tax rate is 32%. Vhich Instructions 2) the lower ending produce blo ing 000 201 1o oh nlls a. Prepare comparative condensed income statements for 2020 under FIFO and average-cost. (Show 2020 The accounting 0,0P 1o boteianoo boaadonug atinU Mirch computations of ending inventory.) b. Answer the following questions for management. 1. Which cost flow method (FIFO or average-cost) produces the more meaningful inventory amount for the statement of financial position? Why? 2. Which cost flow method (FIFO or average-cost) is more likely to approximate actual physical wod2) flow of the goods? Why?bnu 050S 1ol 3. How much additional cash will be available for management under average-cost than under FIFO? Why? March (to 3/25) SHooni boenbi89 qmoo uqo ol enoitesup ollol ori swanA.d to mol od

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