Business, 19.08.2021 01:40 00manray

The following information applies for Backes Corp as of December 1st, 2013. Beginning inventory 4,000 units costing $13.00/unit Sales during 2013 60,000 units sold for $70.00/unit Purchases during 2013 100,000 units costing $45.00/unit Backes values their inventory using the periodic LIFO method. The company can buy an additional 5,000 units at $60/unit before December 31st.

Required:
a. Calculate the cost of goods sold and gross margin without the additional purchase.
b. Calculate the cost of goods sold and gross margin with the additional purchase of 5,000 units.
c. Backes releases their income statement on December 31, 2013. If they wish to reduce their taxes, should Backes make the additional purchase before year-end?

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The following information applies for Backes Corp as of December 1st, 2013. Beginning inventory 4,...

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