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For ACCT quiz. I also need to know the difference between the pretax income and the ending inventory accounts for the 2 cases: CASE A:
For ACCT quiz. I also need to know the difference between the pretax income and the ending inventory accounts for the 2 cases:
CASE A: pretax income and ending inventory
CASE B: pretax income and ending inventory
and then the difference between the two
The following information applies to the questions displayed below Beck Inc. 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 7,500 $13 Inventory, December 31, prior year For the current year: 19,500 10,500 8,500 16,500 Purchase, March 5 Purchase, September 19 Sale ($28 each) Sale (S30 each) Operating expenses (excluding income tax expense) $405,000 alue: 12.00 points Required 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. (Loss amounts should be indicated with a minus sign.) BECK INC. Income Statement For the Year Ended December 31, current year Case A Case B FIFO LIFO $ 238,000 $ 238,000 Cost of goods sold: S 97,500 $ 97,500 60,000 Beginning inventory Purchases 60,000 Goods available for sale 157,500 157,500 Ending inventory Cost of goods sold Pretax income/lossStep by Step Solution
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