The accounting records of Allen Insulation, Inc. reflected the following balances as of January 1, 20xx:
|Beginning Inventory||$24,000 (200 units @ $120)|
The following transactions occurred in 20XX:
January 30th Purchase (cash) 130 units @ $124
March 12th Purchase (cash) 220 units @$128
June 3rd Sale (cash) 350 units @$320
Paid $24,000 of operating expenses.
Paid cash for income tax at the rate of 40 percent of income before tax.
Compute the cost of goods sold, ending inventory, gross profit, income tax expense and net profit assuming:
- FIFO cost flow
- LIFO cost flow
- Weighted-average cost flow