a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of Inventory. (3) a second purchase of Inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of Income tax expense. Show the amounts of each event in horizontal statements models, assuming first a FIFO and then a LIFO cost flow. b. Compute net Income using FIFO. c. Compute net Income using LIFO. e. Which method, FIFO or LIFO, produced the larger amount of assets on the balance sheet?
a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of Inventory. (3) a second purchase of Inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of Income tax expense. Show the amounts of each event in horizontal statements models, assuming first a FIFO and then a LIFO cost flow. b. Compute net Income using FIFO. c. Compute net Income using LIFO. e. Which method, FIFO or LIFO, produced the larger amount of assets on the balance sheet?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter7: Inventory Cost Flow Assumptions (fifolifo)
Section: Chapter Questions
Problem 1R: Del Rio began Rio Enterprises on January 1 with 200 units of inventory. During the year, 500...
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how did you get the -68419 and -61272 in the fifo
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