Tyler Company has the following information related to purchases and sales of one of its inventory items. Date Description Units Purchased at Cost Units Sold at Retail Sept. 1 Beginning inventory 400 units @ $16 10 Purchase 600 units @ $17 20 Sales 25 Purchase Assume Tyler uses a perpetual inventory system. 670 units @ $29 1,000 units at $19 Required: Calculate ending inventory and cost of goods sold using the FIFO, LIFO, and average cost methods. FIFO LIFO Cost of $ $ goods sold Ending $ Avg Cost inventory 2. Which inventory costing method produces the highest amount for net income? 3. Which inventory costing method produces the lowest amount for taxes? 4. Which inventory costing method produces the highest amount for ending inventory?
Tyler Company has the following information related to purchases and sales of one of its inventory items. Date Description Units Purchased at Cost Units Sold at Retail Sept. 1 Beginning inventory 400 units @ $16 10 Purchase 600 units @ $17 20 Sales 25 Purchase Assume Tyler uses a perpetual inventory system. 670 units @ $29 1,000 units at $19 Required: Calculate ending inventory and cost of goods sold using the FIFO, LIFO, and average cost methods. FIFO LIFO Cost of $ $ goods sold Ending $ Avg Cost inventory 2. Which inventory costing method produces the highest amount for net income? 3. Which inventory costing method produces the lowest amount for taxes? 4. Which inventory costing method produces the highest amount for ending inventory?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Tyler Company has the following information related to purchases and sales of one of its inventory items.
Date
Description
Units Purchased at Cost
Units Sold at Retail
Sept. 1 Beginning inventory
400 units @ $16
10 Purchase
600 units @ $17
20 Sales
25 Purchase
Assume Tyler uses a perpetual inventory system.
670 units @ $29
1,000 units at $19
Required:
Calculate ending inventory and cost of goods sold using the FIFO, LIFO, and average cost methods.
FIFO
LIFO
Cost of
$
$
goods sold
Ending
$
Avg Cost
inventory
2. Which inventory costing method produces the highest amount for net income?
3. Which inventory costing method produces the lowest amount for taxes?
4. Which inventory costing method produces the highest amount for ending inventory?
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