Chapter 5, Problem 33P

a.

To determine

Show the amounts of each event in horizontal statement models under FIFO and LIFO.

b.

To determine

Compute net income using FIFO.

c.

To determine

Compute net income using LIFO.

d.

To determine

Explain the difference in the amount of income tax expenses incurred using the two cost flow assumption.

e.

To determine

Explain the manner in which the FIFO and the LIFO cost flow assumptions affect the statement of cash flows.