17. Based on the above, which method would show a larger net income number? (FIFO, LIFO or WA)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question
17
For questions 11 - 13 assume the company uses Last-in,
First-out (LIFO0) inventory valuation.
11. $
Calculate ending inventory (LIFO)
12. $
Calculate cost of goods sold (LIFO)
13. $
Calculate gross profit (LIFO)
For questions 14 - 16 assume the company uses Weighted
Average cost inventory valuation.
14. $
Calculate ending inventory (WA)
15. $
Calculate cost of goods sold (WA)
16. $
Calculate gross profit (WA)
17. Based on the above, which method would show a larger
net income number? (FIFO, LIFO or WA)
Transcribed Image Text:For questions 11 - 13 assume the company uses Last-in, First-out (LIFO0) inventory valuation. 11. $ Calculate ending inventory (LIFO) 12. $ Calculate cost of goods sold (LIFO) 13. $ Calculate gross profit (LIFO) For questions 14 - 16 assume the company uses Weighted Average cost inventory valuation. 14. $ Calculate ending inventory (WA) 15. $ Calculate cost of goods sold (WA) 16. $ Calculate gross profit (WA) 17. Based on the above, which method would show a larger net income number? (FIFO, LIFO or WA)
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