The management of Oriole Company asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2017, the accounting records show these data.Inventory, January 1 (9,220 units) $ 31,348Cost of 131,450 units purchased 501,454Selling price of 95,340 units sold 745,200Operating expenses 120,500Units purchased consisted of 37,740 units at $3.60 on May 10; 62,070 units at $3.80 on August 15; and 31,640 units at $4.10 on November 20. Income taxes are 26%.(a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.)Oriole CompanyCondensed Income Statements  FIFO LIFO $  $                                          $  $

Question
Asked Apr 11, 2019
The management of Oriole Company asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2017, the accounting records show these data.

Inventory, January 1 (9,220 units)   $ 31,348
Cost of 131,450 units purchased   501,454
Selling price of 95,340 units sold   745,200
Operating expenses   120,500

Units purchased consisted of 37,740 units at $3.60 on May 10; 62,070 units at $3.80 on August 15; and 31,640 units at $4.10 on November 20. Income taxes are 26%.

(a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.)

Oriole Company
Condensed Income Statements

 
 
FIFO
 
LIFO
 
$
 
 
$
 
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
 
 
$
 
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Expert Answer

Step 1

Inventory:

 

Inventory refers to the entire stock of goods purchased, goods utilized and goods maintained by the company in the course of the regular business activities.

Step 2

Compute the inventory under FIFO.

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Step 3

Compute the inventory under ...

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