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Question: eu school problem 3 25 points shamrock inc sells highdefinition...

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eu School Problem 3 (25 points) Shamrock Inc. sells high-definition televisions and uses a perpetual inventory system. are Shamrocks purchases during July Shown below Purchase Date Unit purchased July 3 July 7 July 25 Total Unit cost 190 195 $205 Total cost $1,710 $2,340 32 $6,305 On July 20, Shamrock Inc. sold 15 units. The other 17 units remained in inventory at July 31 1. Compute the cost of goods sold relating to the sale on July 20 and the ending inventory July 31 using the following cost flow assumptions. (15 points) (Show your solutions, including the number of units and costs per unit) Ending Cost of Inventory Goods Sold a Average cost b FIFO (First-in, first-out) c LIFO (Last-in, first-out) 2. Using the cost figures computed above, answer the following questions: a. Which of the three cost flow assumptions will result in the company reporting the lowest net income for the current year?Would this always be the case? Explain. (5 points) b. Which of the three cost flow assumptions will esult in the highest income tax expense for the year? Would you expect this usually to be the case? Explain. (5 points)
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