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Oriole Instrument Corporation Statement of Income and Retained Earnings for the Years Ended May 31 2020 2021 2022 2023 $12,715 $13,672 $14,941 $15,496 Sales-net Cost of goods sold Beginning inventory Purchases Ending inventory Total Gross profit Administrative expenses Income before taxes Income taxes (30%) Net income Retained earnings-beginning Retained earnings-ending Earnings per share (a) 2019 $11,450 820 10,660 (902) 10,578 902 11,398 (820) 872 574 298 89 820 12,300 Oriole Instrument Corporation Schedule of Inventory Balances Using Average Cost Method Year Ended May 31 2018 2019 2020 2021 2022 2023 $779 $922 $895 $1,041 $1,214 $1,393 11,480 1.235 626 609 183 209 426 989 1,198 $1,198 $1,624 $2,173 $2.09 $4.26 $5.49 (914) 12.206 1,466 682 784 235 549 1.624 914 1,014 13,038 14,022 (1,014) (1,123) 12,938 13,913 1,583 811 2,003 744 1,259 378 881 2,173 $3,054 $8.81 772 232 540 3,054 $3,594 $5.40 Prepare comparative statements for the five years that would be suitable for inclusion in the historical summary portion of Oriole's annual report, assuming that Oriole had changed its inventory costing method to weighted average cost in 2023. Indicate the effects on net income and earnings per share for the years involved. (Round earnings per share to 2 decimal places, e.g. 52.75. Round answers to 0 decimal places, e.g. 5,275.)

Oriole Instrument Corporation Statement of Income and Retained Earnings for the Years Ended May 31 2020 2021 2022 2023 $12,715 $13,672 $14,941 $15,496 Sales-net Cost of goods sold Beginning inventory Purchases Ending inventory Total Gross profit Administrative expenses Income before taxes Income taxes (30%) Net income Retained earnings-beginning Retained earnings-ending Earnings per share (a) 2019 $11,450 820 10,660 (902) 10,578 902 11,398 (820) 872 574 298 89 820 12,300 Oriole Instrument Corporation Schedule of Inventory Balances Using Average Cost Method Year Ended May 31 2018 2019 2020 2021 2022 2023 $779 $922 $895 $1,041 $1,214 $1,393 11,480 1.235 626 609 183 209 426 989 1,198 $1,198 $1,624 $2,173 $2.09 $4.26 $5.49 (914) 12.206 1,466 682 784 235 549 1.624 914 1,014 13,038 14,022 (1,014) (1,123) 12,938 13,913 1,583 811 2,003 744 1,259 378 881 2,173 $3,054 $8.81 772 232 540 3,054 $3,594 $5.40 Prepare comparative statements for the five years that would be suitable for inclusion in the historical summary portion of Oriole's annual report, assuming that Oriole had changed its inventory costing method to weighted average cost in 2023. Indicate the effects on net income and earnings per share for the years involved. (Round earnings per share to 2 decimal places, e.g. 52.75. Round answers to 0 decimal places, e.g. 5,275.)

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
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Both the management of Oriole Instrument Corporation, a small company that follows IFRS, and its independent auditors recently concluded that the company's results of operations will be reliable and more relevant in future years if Oriole changes its method of costing inventory from FIFO to weighted average cost. The following data are a five- year income summary using FIFO and a schedule of what the inventories might have been if they had been stated using the weighted average cost method. Oriole Instrument Corporation Statement of Income and Retained Earnings for the Years Ended May 31 2020 2021 2022 $12,715 $13,672 $14,941 Sales-net Cost of goods sold Beginning inventory Purchases Ending inventory Total Gross profit Administrative expenses Income before taxes Income taxes (30%) Net income Retained earnings-beginning Retained earnings-ending Earnings per share (a) 2018 2019 $779 2019 $11,450 820 10,660 (902) 10,578 872 574 298 89 902 209 989 11,398 (820) 11,480 Oriole Instrument Corporation Schedule of Inventory Balances Using Average Cost Method Year Ended May 31 2020 2021 2022 $922 $895 $1,041 $1,214 1,235 626 609 183 426 549 1,198 1,624 $1,198 $1,624 $2,173 $2.09 $4.26 $5.49 820 12,300 (914) 12,206 1,466 682 784 235 2023 $1,393 2019 914 13,038 (1.014) 12,938 2023 $15,496 1,014 14,022 (1,123) 13,913 1,583 811 2,003 744 1,259 772 378 232 881 540 2,173 3,054 $3,054 $3,594 $8.81 $5.40 Prepare comparative statements for the five years that would be suitable for inclusion in the historical summary portion of Oriole's annual report, assuming that Oriole had changed its inventory costing method to weighted average cost in 2023. Indicate the effects on net income and earnings per share for the years involved. (Round earnings per share to 2 decimal places, e.g. 52.75. Round answers to 0 decimal places, e.g. 5,275.) ORIOLE INSTRUMENTO Statement of Income and R For the Years Ende 2020
Transcribed Image Text:Both the management of Oriole Instrument Corporation, a small company that follows IFRS, and its independent auditors recently concluded that the company's results of operations will be reliable and more relevant in future years if Oriole changes its method of costing inventory from FIFO to weighted average cost. The following data are a five- year income summary using FIFO and a schedule of what the inventories might have been if they had been stated using the weighted average cost method. Oriole Instrument Corporation Statement of Income and Retained Earnings for the Years Ended May 31 2020 2021 2022 $12,715 $13,672 $14,941 Sales-net Cost of goods sold Beginning inventory Purchases Ending inventory Total Gross profit Administrative expenses Income before taxes Income taxes (30%) Net income Retained earnings-beginning Retained earnings-ending Earnings per share (a) 2018 2019 $779 2019 $11,450 820 10,660 (902) 10,578 872 574 298 89 902 209 989 11,398 (820) 11,480 Oriole Instrument Corporation Schedule of Inventory Balances Using Average Cost Method Year Ended May 31 2020 2021 2022 $922 $895 $1,041 $1,214 1,235 626 609 183 426 549 1,198 1,624 $1,198 $1,624 $2,173 $2.09 $4.26 $5.49 820 12,300 (914) 12,206 1,466 682 784 235 2023 $1,393 2019 914 13,038 (1.014) 12,938 2023 $15,496 1,014 14,022 (1,123) 13,913 1,583 811 2,003 744 1,259 772 378 232 881 540 2,173 3,054 $3,054 $3,594 $8.81 $5.40 Prepare comparative statements for the five years that would be suitable for inclusion in the historical summary portion of Oriole's annual report, assuming that Oriole had changed its inventory costing method to weighted average cost in 2023. Indicate the effects on net income and earnings per share for the years involved. (Round earnings per share to 2 decimal places, e.g. 52.75. Round answers to 0 decimal places, e.g. 5,275.) ORIOLE INSTRUMENTO Statement of Income and R For the Years Ende 2020
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