Answered: Which of the following statement about…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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Lancelot plc's stock records show the following transactions for a specific item during last month: The organization made issues of inventory of 70 units each on 4th, 20th and 27th of the month whiles it received 300 units on 13th. The inventory at the beginning of last month consisted of 120 units valued at GHC7200. The receipt last month cost GHC62 per unit. The closing value of inventory for last month has been calculated twice using the FIFO and the LIFO. Which of the following statement about the closing inventory for last month is correct? A. The FIFO method is lower than the LIFO by GHC250 B. The LIFO method is lower than the FIFO by GHC250 C. The FIFO method is lower than the LIFO method by GHC240 D. The LIFO method is lower than the FIFO by GHC240 Reset Selection

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