American Importers reports net income of $ 50,000 and cost of goods sold of $ 450,000 . If the company ’ s gross profit rate was 40 %, net sales were
Question 25
The manager of Weiser is given a bonus based on net income before taxes . The net income after taxes is $ 35,700 for FIFO and $ 29,400 for LIFO . The tax rate is 30 %. The bonus rate is 20 %. How much higher is the manager ' s bonus if FIFO is adopted instead of LIFO ?
Question 26
Classic Floors has the following inventory data :
July 1 Beginning inventory 15 units at $ 6.00 5 Purchases 60 units at $ 6.60 14 Sale 40 units 21 Purchases 30 units at $ 7.20 30 Sale 28 units
Assuming that a perpetual inventory system is used , what is the cost of goods sold on a LIFO basis for July ?