question archive Watson's Copy Center uses laser printers
Watson's Copy Center uses laser printers
Subject:BusinessPrice: Bought3
Watson's Copy Center uses laser printers. Assume Watson started the year with 100 containers of ink (average cost of $8.70 each, FIFO cost of $8.80 each, LIFO cost of $7.70 each). During the year, Watson purchased 600 containers of ink at $10.10 and sold 590 units for $21.50 each. Watson paid operating expenses throughout the year, a total of $3,775. Watson is not subject to income tax. Prepare Watson's Income Statement for the current year ended December 31 under the average, FIFO, and LIFO inventory costing methods. Include a complete statement heading. Prepare Watson's Income Statement for the current year ended December 31 under the average, FIFO, and LIFO inventory costing methods. Include a complete statement heading. Complete the income statement by selecting the appropriate heading and income statement labels and then calculating the amounts for each of the three required inventory methods. (Calculate unit costs to the nearest cent. Round all other calculations to the nearest whole dollar.)
