1.Use the following information from Marvel Company for the monthof July to answer questions 1 through 3
July 1 Beginning inventory 50 units @$15 each
July 3 Purchase 80 units @$20 each
July 8 Sale 70 units
July 15 Purchase 100 units @$30 each
July 23 Sale 50 units
(1). Assume that Marvel uses a perpetual FIFO inventory system.What is the dollar value of its ending inventory?
(2). Assume that Marvel uses a perpetual LIFO inventory system.What is the dollar value of its ending inventory?
(3). Assume that Marvel uses a perpetual specific identificationinventory system. Its ending inventory consists of 20 units frombeginning inventory, 40 units from the July 3 purchase, and 50units from the July 15 purchase. What is the dollar value of itsending inventory?
Please explain.
2. Which statement is correct?
A) Tax credits reduce tax liability on a dollar-for-dollarbasis.
B) Tax deductions reduce tax liability on a dollar-for-dollarbasis.
C) The benefit of a tax credit depends on the taxpayer's marginaltax rate.
D) Tax deductions are more valuable for high-income taxpayers thanfor low-income taxpayers.
3.Max and Alexandra are married and incur $5,500 of qualifyingexpenses to care for their two
children, ages 2 and 5. Max's earned income is $35,000 andAlexandra's earnings from a part-time
job are $5,000. What is the amount of the qualifying expenses forpurposes of computing the child
and dependent care credit? (show your work please)
4. A company has $100,000 of U.S. source taxable income and$300,000 of foreign source taxable
income from countries X and Y for a total worldwide taxable incomeof $400,000. Countries X and
Y levy a total of $60,000 in foreign taxes upon the foreign sourcetaxable income. U.S. taxes before
credits are $140,000. The foreign tax credit limitation is ?explain please
July 1 Beginning inventory 50 units @$15 each
July 3 Purchase 80 units @$20 each
July 8 Sale 70 units
July 15 Purchase 100 units @$30 each
July 23 Sale 50 units
(1). Assume that Marvel uses a perpetual FIFO inventory system.What is the dollar value of its ending inventory?
(2). Assume that Marvel uses a perpetual LIFO inventory system.What is the dollar value of its ending inventory?
(3). Assume that Marvel uses a perpetual specific identificationinventory system. Its ending inventory consists of 20 units frombeginning inventory, 40 units from the July 3 purchase, and 50units from the July 15 purchase. What is the dollar value of itsending inventory?
Please explain.
2. Which statement is correct?
A) Tax credits reduce tax liability on a dollar-for-dollarbasis.
B) Tax deductions reduce tax liability on a dollar-for-dollarbasis.
C) The benefit of a tax credit depends on the taxpayer's marginaltax rate.
D) Tax deductions are more valuable for high-income taxpayers thanfor low-income taxpayers.
3.Max and Alexandra are married and incur $5,500 of qualifyingexpenses to care for their two
children, ages 2 and 5. Max's earned income is $35,000 andAlexandra's earnings from a part-time
job are $5,000. What is the amount of the qualifying expenses forpurposes of computing the child
and dependent care credit? (show your work please)
4. A company has $100,000 of U.S. source taxable income and$300,000 of foreign source taxable
income from countries X and Y for a total worldwide taxable incomeof $400,000. Countries X and
Y levy a total of $60,000 in foreign taxes upon the foreign sourcetaxable income. U.S. taxes before
credits are $140,000. The foreign tax credit limitation is ?explain please
Related questions
The inventory records of Kuffel Co. reflected the followinginformation for the year ended December 31, 2013: |
| Date | Transaction | Number of Units | Unit Cost | Total Cost | |||
| 1/1 | Beginninginventory | 150 | $ | 25 | $ | 3,750 | |
| 2/22 | Purchase | 70 | 32 | 2,240 | |||
| 3/7 | Sale | (100 | ) | - | - | ||
| 4/15 | Purchase | 90 | 37 | 3,330 | |||
| 6/11 | Purchase | 140 | 39 | 5,460 | |||
| 9/28 | Sale | (100 | ) | - | - | ||
| 10/13 | Purchase | 50 | 36 | 1,800 | |||
| Required: |
| (a) | Assume that Kuffel Co. uses a periodic inventory system.Calculate cost of goods sold and ending inventory under FIFO andLIFO FIFO LIFO COGS Ending Inventory b)
|
Use the following information for the Exercisesbelow.
[The following information applies to the questionsdisplayed below.]
Laker Company reported the following January purchases and salesdata for its only product.
Date | Activities | Units Acquired at Cost | Units sold at Retail | ||||||||||||||
Jan. | 1 | Beginning inventory | 140 | units | @ | $ | 6.00 | = | $ | 840 | |||||||
Jan. | 10 | Sales | 100 | units | @ | $ | 15 | ||||||||||
Jan. | 20 | Purchase | 60 | units | @ | $ | 5.00 | = | 300 | ||||||||
Jan. | 25 | Sales | 80 | units | @ | $ | 15 | ||||||||||
Jan. | 30 | Purchase | 180 | units | @ | $ | 4.50 | = | 810 | ||||||||
Totals | 380 | units | $ | 1,950 | 180 | units | |||||||||||
The Company uses a perpetual inventory system. For specificidentification, ending inventory consists of 200 units, where 180are from the January 30 purchase, 5 are from the January 20purchase, and 15 are from beginning inventory.
Exercise 6-3 Perpetual: Inventory costing methods LO P1
Required:
1. Complete the table to determine the costassigned to ending inventory and cost of goods sold using specificidentification.
2. Determine the cost assigned to ending inventoryand to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventoryand to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventoryand to cost of goods sold using LIFO.
Required 3
Required 4
Complete the table to determine the cost assigned to endinginventory and cost of goods sold using specific identification.
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Determine the cost assigned to ending inventory and to cost ofgoods sold using weighted average. (Round cost per unit to 2decimal places.)
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Determine the cost assigned to ending inventory and to cost ofgoods sold using FIFO.
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Determine the cost assigned to ending inventory and to cost ofgoods sold using LIFO.
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