7. LIFO vs FIFO Consider the following record of inventories for NINO (Nothing-In-Nothing-Out) Retailing: Year 1: bought 4 units for $12 each; sold 2 unit. Year 2: bought 5 units for $15 each; sold 4 units. Year 3: bought 6 units for $16 each; sold 8 units. Assume further that the company uses LIFO and the periodic inventory system. In addition, the marginal tax rate is 21%. 7.1 Complete the following table (shaded cells): Year ElAFo EluFo LIFO reserve ALIFO reserve COGSUFO -COGSFIFO NIFIFO - NluFO 1 2
7. LIFO vs FIFO Consider the following record of inventories for NINO (Nothing-In-Nothing-Out) Retailing: Year 1: bought 4 units for $12 each; sold 2 unit. Year 2: bought 5 units for $15 each; sold 4 units. Year 3: bought 6 units for $16 each; sold 8 units. Assume further that the company uses LIFO and the periodic inventory system. In addition, the marginal tax rate is 21%. 7.1 Complete the following table (shaded cells): Year ElAFo EluFo LIFO reserve ALIFO reserve COGSUFO -COGSFIFO NIFIFO - NluFO 1 2
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.24MCE
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