The management of Bramble Corp. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the accounting records show these data. Inventory, January 1 (9,400 units) Cost of 112,800 units purchased Selling price of 91,300 units sold Operating expenses $32,900 440,390 705,000 116,500 Units purchased consisted of 32,900 units at $3.70 on May 10; 56,400 units at $3.90 on August 15; and 23,500 units at $4.20 on November 20. Income taxes are 30%.
The management of Bramble Corp. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the accounting records show these data. Inventory, January 1 (9,400 units) Cost of 112,800 units purchased Selling price of 91,300 units sold Operating expenses $32,900 440,390 705,000 116,500 Units purchased consisted of 32,900 units at $3.70 on May 10; 56,400 units at $3.90 on August 15; and 23,500 units at $4.20 on November 20. Income taxes are 30%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The management of Bramble Corp. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow
methods. For 2022, the accounting records show these data.
Inventory, January 1 (9.400 units)
Cost of 112,800 units purchased
Selling price of 91,300 units sold
Operating expenses
$ 32,900
440,390
(a)
705,000
116,500
Units purchased consisted of 32,900 units at $3.70 on May 10; 56,400 units at $3.90 on August 15; and 23,500 units at $4.20 on
November 20. Income taxes are 30%.
Prepare comparative condensed income statements for 2022 under FIFO and LIFO. (Round answers to O decimal places, e.g. 5,125.)
Bramble Corp.
Condensed Income Statements
FIFO
I
S
LIFO
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