12. A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000,and a pretax income of $400,000. If it had used LIFO, its beginning inventory would have been$20,000, its ending inventory would have been $16,000, and its pretax income would have been:a. $374,000b. $388,000c. $396,000d. $404,000

12. A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000,and a pretax income of $400,000. If it had used LIFO, its beginning inventory would have been$20,000, its ending inventory would have been $16,000, and its pretax income would have been:a. $374,000b. $388,000c. $396,000d. $404,000

Name: 12. A firm using FIFO had a beginning inventory of $48,000, an ending
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Description: 12. A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000,and a pretax income of $400,000. If it had used LIFO, its beginning inventory would have been$20,000, its ending inventory would have been $16,000, and its pre

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.7P

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A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000, and a pretax income of $400,000. If it had used LIFO, its beginning inventory would have been $20,000, its ending inventory would have been $16,000, and its pretax income would have been:
If firm’s beginning inventory is $70,000, purchases are $320,000, and the cost of good sold is $300,000, what is its ending inventory?a. 260,00b. $30,000c. $90,000d. $330,000
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Terry Company had January 1 inventory of $100,000 when it adopted dollarvalue LIFO. During the year, purchases were $600,000 and sales were$1,000,000. December 31 inventory at year-end prices was $143,360, and the price index was 112 (Price Index for base year = 100). What is Terry’s ending inventory and gross profit, respectively?a. $131,360 and 428,000b. $128,000 and 443,460c. $131,360 and 431,360d. $143,360 and 443,460