The management of Oriole Company asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2017, the accounting records show these data. Inventory, January 1 (9,220 units) $ 31,348 Cost of 131,450 units purchased 501,454 Selling price of 95,340 units sold 745,200 Operating expenses 120,500 Units purchased consisted of 37,740 units at $3.60 on May 10; 62,070 units at $3.80 on August 15; and 31,640 units at $4.10 on November 20. Income taxes are 26%.(a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.) Oriole CompanyCondensed Income Statements FIFO LIFO $ $ $ $
The management of Oriole Company asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2017, the accounting records show these data. Inventory, January 1 (9,220 units) $ 31,348 Cost of 131,450 units purchased 501,454 Selling price of 95,340 units sold 745,200 Operating expenses 120,500 Units purchased consisted of 37,740 units at $3.60 on May 10; 62,070 units at $3.80 on August 15; and 31,640 units at $4.10 on November 20. Income taxes are 26%.(a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.) Oriole CompanyCondensed Income Statements FIFO LIFO $ $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The management of Oriole Company asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2017, the accounting records show these data.
Units purchased consisted of 37,740 units at $3.60 on May 10; 62,070 units at $3.80 on August 15; and 31,640 units at $4.10 on November 20. Income taxes are 26%.
(a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.)
| Inventory, January 1 (9,220 units) | $ 31,348 | |
| Cost of 131,450 units purchased | 501,454 | |
| Selling price of 95,340 units sold | 745,200 | |
| Operating expenses | 120,500 |
Units purchased consisted of 37,740 units at $3.60 on May 10; 62,070 units at $3.80 on August 15; and 31,640 units at $4.10 on November 20. Income taxes are 26%.
(a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.)
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