E7-7 Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3

E7-7 Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3 The foowing information applies to the questions displayed below Broadhead Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost 2,860 $12 Inventory, December 31, prior year For the current year Purchase, April 11 Purchase, June 1 Sales ($58 each) Operating expenses (excluding Income tax expense) 8,800 10 7,87015 10,860 $189,000 Section Break E7-7 Analyzing and Interpreting the Flnanclal Statement Effects of LIFO and FIFO LO7-2,7-3