Booth company employs a periodic inventory system and reported the following inventory information for the month of august: august 1 beginning inventory 2,200 units @ $15 cost per unit august 6 sold 1,300 units august 15 purchased 1,700 units @ $25 cost per unit august 18 sold 1,900 units august 23 purchased 900 units @ $24 cost per unit august 26 purchased 700 units @ $19 cost per unit august 29 sold 2,000 units august 30 purchased 1,500 units @ $37 cost per unit during august, booth company reported operating expenses of $23,000 and had an income tax rate of 37%. using the weighted average method, booth company's gross profit for august totaled $70,460. calculate the amount of net income reported on booth company's income statement for august using the lifo method.

Net income= 41,806.8

Explanation:

Giving the following information:

The following inventory information for August:

August 1 Beginning inventory 2,200 units at $15 cost per unit

August 6 Sold 1,300 units

August 15 Purchased 1,700 units at $25 cost per unit

August 18 Sold 1,900 units

August 23 Purchased 900 units at $24 cost per unit

August 26 Purchased 700 units at $19 cost per unit

August 29 Sold 2,000 units

August 30 Purchased 1,500 units at $37 cost per unit

During August, Booth Company reported operating expenses of $23,000 and had an income tax rate of 37%

First, we need to calculate the revenues for August.

Weighted-average cost= (15 + 25 + 24 + 19 + 37)/5= $24

Units sold= 5,200 units

COGS= 5,200*24= 124,800

Revenues= gross profit + cost of goods sold= 70,460 + 124,800= 195,260

Cost, LIFO method:

COGS= 700*19 + 900*24 + 1700*25 + 1900*15= 105,900

Income statement:

Revenues= 195,260

COGS= 105,900 (-)

Gross profit= 89,360

Operating expenses= 23,000 (-)

EBIT= 66,360

Tax= 24,553.2 (-)

Net income= 41,806.8

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

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