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Problem 6-4A (Part Level Submission) The management of Larkspur, Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost.
Problem 6-4A (Part Level Submission) The management of Larkspur, Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2019 if either the FIFO or the LIFO method had been used. For 2019, the accounting records show these data: Inventories Purchases and Sales Total net sales (234,000 units) Total cost of goods purchased (247,000 units) $971,100 618,150 18,200 Beginning (9,100 units) Ending (22,100 units) Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost $2.25 $146,250 124,800 132,600 2.75 214.300 $618,150 65,000 52,000 52,000 78,000 247,000 2.40 2.55 Operating expenses were $130,000, and the company's income tax rate is 40%
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