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Assume that a firm has 0 units of inventory on January 1, 2021 - the start of its 2021 fiscal year - and makes the
Assume that a firm has 0 units of inventory on January 1, 2021 - the start of its 2021 fiscal year - and makes the following inventory related transactions in its first two-years of operations. A. If the firm uses the first-in, first-out (FIFO) cost-flow assumption to account for its inventories, what amount of Cost of Goods Sold will it report on the 2022 Income Statement? Please provide a dollar amount. (1 point) B. If the firm uses the FIFO cost-flow assumption to account for its inventory, what amount of Inventory will it report on its 2022 Balance Sheet (i.e., December 31, 2022)? Please provide a dollar amount. (1 point) C. If the firm uses the last-in, first-out (LIFO) cost-flow assumption to account for its inventories, what amount of Cost of Goods Sold will it report on the 2022 Income Statement? Please provide a dollar amount. (1 point) D. If the firm uses the LIFO cost-flow assumption to account for its inventory, what amount of Inventory will it report on its 2022 Balance Sheet (i.e., December 31, 2022)? Please provide a dollar amount. (1 point)
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