Exercise 8 15 The board of directors of Vaughn Corporation is considering whether or not it should instruct the accounting department to shift from a first in, first out (FIFO) basis of pricing inventories to a last in, first out (LIFO) basis The following information is available Sales 19,200 units $57 Inventory, January 1 5,500 units 23 Purchases 6,400 units 25 9,700 units 28 7,400 units 34 Inventory, December 31 9,800 units Operating expenses $226,000 Prepare a condensed income statement for the year on both bases for comparative purposes Vaughn Corporation Condensed Income Statement For the year ended December 31 First in, first out Last in, first out Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan 1Inventory, Dec 31Net Income (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues $ $ Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan 1Inventory, Dec 31Net Income (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan 1Inventory, Dec 31Net Income (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues $ $ Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan 1Inventory, Dec 31Net Income (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan 1Inventory, Dec 31Net Income (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan 1Inventory, Dec 31Net Income (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan 1Inventory, Dec 31Net Income (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan 1Inventory, Dec 31Net Income (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan 1Inventory, Dec 31Net Income (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan 1Inventory, Dec 31Net Income (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues $ $

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Exercise 8-15 The board of directors of Vaughn Corporation is considering whether or not it should instruct the accounting department to shift from a first-in,

Exercise 8-15

The board of directors of Vaughn Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available.

Sales	19,200	units @	$57
Inventory, January 1	5,500	units @	23
Purchases	6,400	units @	25
	9,700	units @	28
	7,400	units @	34
Inventory, December 31	9,800	units @	?
Operating expenses	$226,000

Prepare a condensed income statement for the year on both bases for comparative purposes.

Vaughn Corporation Condensed Income Statement For the year ended December 31
	First-in, first-out		Last-in, first-out
Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan. 1Inventory, Dec. 31Net Income / (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues		$		$
Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan. 1Inventory, Dec. 31Net Income / (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues :
Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan. 1Inventory, Dec. 31Net Income / (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues	$		$
Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan. 1Inventory, Dec. 31Net Income / (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues
Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan. 1Inventory, Dec. 31Net Income / (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues
Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan. 1Inventory, Dec. 31Net Income / (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues
Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan. 1Inventory, Dec. 31Net Income / (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues
Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan. 1Inventory, Dec. 31Net Income / (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues
Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan. 1Inventory, Dec. 31Net Income / (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues
Cost of Goods AvailableCost of Goods SoldDividendsExpensesGross ProfitInventory, Jan. 1Inventory, Dec. 31Net Income / (Loss)Operating ExpensesPurchasesSales RevenueTotal Revenues		$		$