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.
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