Problem 8C: Inventory Costing: FIFO, LIFO

Problem 8c: Inventory Costing: FIFO, LIFO1. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the FIFO inventory method, determine the inventory dollar amount on July 1.A) $890 B) $860 C) $1,500 D) $850 E) $8802. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the FIFO inventory method, determine the dollar amount of purchases made in July.A) $850 B) $6,140 C) $6,990 D) $10,500 E) $12,000 23. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the FIFO inventory method, determine the cost of goods available for sale during July.A) $2,047 B) $850 C) $6,140 D) $1,981 E) $6,9904. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the FIFO inventory method, determine the cost of goods sold during July.A) $5,009 B) $8,550 C) $4,943 D) $6,990 E) $6,140 35. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the FIFO inventory method, determine the inventory dollar amount on July 31.A) $2,047 B) $3,450 C) $1,955 D) $1,981 E) $1,9786. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the FIFO inventory method, determine the sales dollar amount for July.A) $850 B) $8,550 C) $6,990 D) $6,140 E) $4,943 47. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the FIFO inventory method, determine the gross profit for July.A) $6,990 B) $4,943 C) $8,550 D) $3,607 E) $13,4938. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the FIFO inventory method, determine the income before taxes for July.A) $2,700 B) $6,307 C) $3,607 D) $4,943 E) $907 59. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the FIFO inventory method, determine the income taxes expense for July.A) $8,550 B) $907 C) $317 D) $590 E) $3,60710. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the FIFO inventory method, determine the net income for July.A) $317 B) $590 C) $907 D) $8,550 E) $3,607 611. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the LIFO perpetual inventory method, determine the inventory dollar amount on July 1.A) $850 B) $880 C) $890 D) $860 E) $1,50012. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the LIFO perpetual inventory method, determine the dollar amount of purchases made in July.A) $12,000 B) $850 C) $6,140 D) $6,990 E) $10,500 713. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the LIFO perpetual inventory method, determine the cost of goods available for sale during July.A) $1,981 B) $850 C) $6,140 D) $2,047 E) $6,99014. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the LIFO perpetual inventory method, determine the cost of goods sold during July.A) $4,943 B) $6,990 C) $6,140 D) $5,009 E) $8,550 815. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the LIFO perpetual inventory method, determine the inventory dollar amount on July 31.A) $1,981 B) $3,450 C) $2,047 D) $1,955 E) $1,97816. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the LIFO perpetual inventory method, determine the sales dollar amount for July.A) $850 B) $8,550 C) $6,990 D) $6,140 E) $5,009 917. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the LIFO perpetual inventory method, determine the gross profit for July.A) $6,990 B) $5,009 C) $8,550 D) $3,541 E) $13,55918. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the LIFO perpetual inventory method, determine the income before taxes for July.A) $3,541 B) $5,009 C) $841 D) $2,700 E) $6,241 1019. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the LIFO perpetual inventory method, determine the income taxes expense for July.A) $841 B) $294 C) $547 D) $3,541 E) $8,55020. The Gagnon Merchandising Corporation began July operations with merchandise inventory of 10 units, each of which cost $85. During July, Gagnon Merchandising made the following purchases: (1) July 5, 25 units @ $86 per unit, (2) July 16, 15 units @ $88 per unit, (3) July 27, 30 units @ $89 per unit. During July the Company sold the following units at a sales price of $150 per unit: July 7, 18 units, July 21, 10 units, July 28, 29 units. Operating expenses in July were $2,700. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the LIFO perpetual inventory method, determine the net income for July.A) $841 B) $8,550 C) $3,541 D) $294 E) $547 1121. The Gagnon Merchandising Corporation's September income statements using the FIFO and LIFO perpetual cost flow assumptions would appear as follows. How much more cash would the Gagnon Merchandising Corporation have available on September 30 if it uses LIFO perpetual instead of FIFO? Gagnon Merchandising Corporation Income Statements For the Month Ended September 30LIFO FIFO Perpetual Sales $10,000 $10,000 Cost of Goods Sold $6,200 $6,800 Gross Profit $3,800 $3,200 Operating Expenses $2,800 $2,800 Income Before Taxes $1,000 $400 Income Taxes Expense $350 $140 Net Income $650 $260A) - $390 B) $390 C) $210 D) $600 E) $0

Problem 8C: Inventory Costing: FIFO, LIFO

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