Problem 5.33A (Algo) Effect of FIFO Versus LIFO on income tax expense LO 5-6 The Brick Company had cash sales of $222,200 for Year 1, its first year of operation. On April 2, the company purchased 173 units of inventory at $170 per unit. On September 1 , an additional 130 units were purchased for $187 per unit. The company had 68 units on hand at the end of the year. The company's income tax rate is 40 percent. All transactions are cash transactions. Required a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of imventory. (4) the recognition of cost of goods sold expense, and (5) the payment of inconse tax expense. Record the amounts of each event in horizontal statements models like the following ones, assuming first a FIFO and then a LIFO cost flow. b. Compute net income using FFO. c. Compute net income using UFO. Complete this question by entering vour answers in the tabs below. The preceding paragraph describes five accounting eventsi (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory. recognition of cost of goods sold expense, and ( 5 ) the payment of income tax expenie. Record the amounts of each event in horizontal statements model ter 5 Assessment Complete this question by entering your answers in the tabs below. Compute net income using FIFO. (Round your final answer to the nearest whole doltas amount.) The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of itrventory, (3) a socand purchase of itwentory, (. recognition of cost of goods sold expense, and (5) the payment of income tax expense. Record the amounts of each event in horizontal statements modeis ) following ones, assuming first a FIFO and then a UFO cost flow. (th the Cash Flow column, use the initials OA to designate operating adivity. IA for Investin cribes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) the old expense, and (5) the payment of income tax expense, Record the amounts of each event in horizontal statements models tike the a FIFO and then a UFO cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, Complete this question by entering your answers in the tabs below. Compute net income using UFO. (Round your final answer to the nearest whole dollar amount.)
