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Jamal owns a small retail store as a sole proprietor. The business records show that the cost of the store's inventory items has been steadily
Jamal owns a small retail store as a sole proprietor. The business records show that the cost of the store's inventory items has been steadily increasing. The cost of the ending inventory is $ and the cost of the beginning inventory was $ Jamal uses the FIFO method of inventory valuation. Which of the following statements is true?
a Jamal has apparently decreased the volume of items in his ending inventory as compared to the number of items in his beginning inventory.
b Jamal purchased more inventory during the year than he sold during the same year period.
c Since the cost of the store's inventory items is increasing, Jamal will have a greater cost of goods sold figure under FIFO than LIFO.
d Jamal would have a higher net income if he used the LIFO method of inventory valuation instead of the FIFO method.
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