Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:
Units | Unit Cost | ||||||||
Inventory, December 31, prior year | 2,890 | $ | 12 | ||||||
For the current year: | |||||||||
Purchase, April 11 | 8,860 | 13 | |||||||
Purchase, June 1 | 7,930 | 18 | |||||||
Sales ($55 each) | 10,860 | ||||||||
Operating expenses (excluding income tax expense) | $ | 191,500 | |||||||
Required:
1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.
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1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.
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