Question
Assignment accounting The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests
Assignment accounting
The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2017 if either the FIFO or the LIFO method had been used. For 2017, the accounting records show these data:
Beginning (7,000units)$14,000Total net sales (223,000units)$992,350Ending (14,000units)Total cost of goods purchased (230,000units)572,000
Quarter
Units
Unit Cost
Total Cost
1
60,000
$2.30
$138,000
2
50,000
2.40
120,000
3
50,000
2.50
125,000
4
70,000
2.70
189,000
230,000
$572,000
Prepare comparative condensed income statements for 2017 under FIFO and LIFO.
GRESA INC.
Condensed Income Statements
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