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Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided
Emily 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 | ||||||||
Inventory, December 31, prior year | 2,910 | $ | 14 | ||||||
For the current year: | |||||||||
Purchase, April 11 | 8,920 | 15 | |||||||
Purchase, June 1 | 7,810 | 20 | |||||||
Sales ($54 each) | 10,940 | ||||||||
Operating expenses (excluding income tax expense) | $ | 188,500 | |||||||
Requiredr 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO
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