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Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results. In each space that follows, place the correct sign [less than (<), greater than (>), or equal ] for each comparison, assuming periods of rising prices. 1. FIFO inventory ____________ LIFO inventory 2. FIFO cost of goods sold ____________ LIFO cost of goods sold 3. FIFO net income ____________ LIFO net income 4. FIFO income taxes ____________ LIFO income taxes  Why would management prefer to use LIFO over FIFO in periods of rising prices?

Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results. In each space that follows, place the correct sign [less than (<), greater than (>), or equal ] for each comparison, assuming periods of rising prices. 1. FIFO inventory ____________ LIFO inventory 2. FIFO cost of goods sold ____________ LIFO cost of goods sold 3. FIFO net income ____________ LIFO net income 4. FIFO income taxes ____________ LIFO income taxes  Why would management prefer to use LIFO over FIFO in periods of rising prices?

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 25CE: Effects of Inventory Costing Methods Refer to your answers for Filimonov Inc. in Cornerstone...
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Comparing Inventory Methods

  1. Obj. 5 Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results.

    1. In each space that follows, place the correct sign [less than (<), greater than (>), or equal ] for each comparison, assuming periods of rising prices.

      1. FIFO inventory ____________ LIFO inventory
      2. FIFO cost of goods sold ____________ LIFO cost of goods sold
      3. FIFO net income ____________ LIFO net income
      4. FIFO income taxes ____________ LIFO income taxes

    2.  Why would management prefer to use LIFO over FIFO in periods of rising prices?

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