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Please show formulas Check my v ! Required information E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3 [The
Please show formulas
Check my v ! Required information E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3 [The following information applies to the questions displayed below.] 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 2,850 Unit Cost $ 13 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($56 each) Operating expenses (excluding income tax expense) 8,960 7,850 10,800 14 19 $190,500 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. EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO Case B LIFO $ 604,800 $ 604,800 Sales revenue Cost of goods sold: Beginning inventory Purchases $ $ 37,050 274,590 37,050 274,590 Goods available for sale 311,640 1,640 Ending inventory Cost of goods sold Gross profit Operating expenses Pretax incomeStep by Step Solution
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