Question
3 (1.5 points) Seville Co. distributes sunglasses in the Spanish market that have been previously imported from a Chinese manufacturer. The Company uses a periodic
3 (1.5 points) Seville Co. distributes sunglasses in the Spanish market that have been previously imported from a Chinese manufacturer. The Company uses a periodic inventory system. The following data corresponds to 2020: Purchases Sold Inventory 50@200 10,000 = Dec 31, 2019 Jan 10, 2020 20 @ 210 4,200 Feb 22, 2020 45 @ 300 13,500 May 20, 2020 40 @ 215 8,600 Jul 5, 2020 40 @ 310 12,400 Oct 15, 2020 30 @ 220 6,600 Dec 3, 2020 30 @ 325 = 9,750 Required: (Solve this exercise on the ANSWER SHEET) Prepare a comparison of income statements for the year ended, by filling the corresponding table from the ANSWER SHEET, contrasting FIFO, LIFO and Weighted-Average methods. Assume that "Other Expenses" for the year are 3,500, and the income tax rate is 30%. (0.5 points for each method)
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