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The management of Lily Co. 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 (10,000 units) Cost of 100,000 units purchased Selling price of 84,000 units sold Operating expenses $43,000 492,000 735,000 140,000 Units purchased consisted of 35,000 units at $4.70 on May 10, 35,000 units at $4.90 on August 15, and 30.000 units at $5.20 on November 20, Income taxes are 30%. (a) Prepare comparative condensed income statements for 2022 under FIFO and LIFO. LILY CO. Condensed Income Statement FIFO LIFO

The management of Lily Co. 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 (10,000 units) Cost of 100,000 units purchased Selling price of 84,000 units sold Operating expenses $43,000 492,000 735,000 140,000 Units purchased consisted of 35,000 units at $4.70 on May 10, 35,000 units at $4.90 on August 15, and 30.000 units at $5.20 on November 20, Income taxes are 30%. (a) Prepare comparative condensed income statements for 2022 under FIFO and LIFO. LILY CO. Condensed Income Statement FIFO LIFO

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.10MCP: Comparison of Inventory Costing Methods—Periodic System Bitten Companys inventory records show 600...
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The management of Lily Co. 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 (10,000 units) Cost of 100,000 units purchased Selling price of 84,000 units sold Operating expenses $43,000 (a) 492,000 735,000 140,000 Units purchased consisted of 35,000 units at $4.70 on May 10, 35,000 units at $4.90 on August 15, and 30.000 units at $5.20 on November 20, Income taxes are 30%. Prepare comparative condensed income statements for 2022 under FIFO and LIFO. LILY CO Condensed Income Statement FIFO LIFO
Transcribed Image Text:The management of Lily Co. 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 (10,000 units) Cost of 100,000 units purchased Selling price of 84,000 units sold Operating expenses $43,000 (a) 492,000 735,000 140,000 Units purchased consisted of 35,000 units at $4.70 on May 10, 35,000 units at $4.90 on August 15, and 30.000 units at $5.20 on November 20, Income taxes are 30%. Prepare comparative condensed income statements for 2022 under FIFO and LIFO. LILY CO Condensed Income Statement FIFO LIFO
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