Question

The board of directors of Tamarisk Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available.

Sales		20,200	units @	$58
Inventory, January 1		6,300	units @	23
Purchases		6,200	units @	26
		10,600	units @	29
		6,300	units @	35
Inventory, December 31		9,200	units @	?
Operating expenses		$232,000

please explain by step
Prepare a condensed income statement for the year on both bases for comparative purposes.

Answer 1

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