QUESTION 26 Mendy Clothing Corporation uses a periodic inventory system and the LIFO cost method. The company began 2021 with the following inventory layers (listed in chronological order of acquisition): 5,000 units @ $10 per unit $50,000 8,000 units @ $12 per unit 96,000 During 2021, 20,000 units were purchased for $15 per unit. Sales for the year totaled 30,000 units at various prices, leaving 3,000 units in ending inventory. What is the effect of LIFO liquidation on net income assuring an income tax rate of 25%? $8,500 $17,800 $25,500 $34,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Air QUESTION 27 The Wanyarna Corporation's inventory at December 31, 2021, was $325,000 based on a physical count priced at cost, and before any necessary adjustment for the following: - Merchandise costing $30,000, shipped f.o. b. shipping point from a vendor on December 30, 2021, was received on January 5, 2022. Merchandise costing $22,000, shipped f.o.b. destination from a vendor on December 28, 2021, was received on January 3, 2022. - Merchandise costing $38,000 was shipped to a customer f.o.b. destination on December 28, arrived at the customer's location on January 6, 2022 - Merchandise costing $12,000 was being held on consignment by Ali Company. What amount should Wanyama Corporation report as inventory in its December 31, 2021, balance sheet? $325,000 $367,000 $405,000 $427,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Air co QUESTION 28 Ramos Company uses the FIFO method for internal reporting purposes and LIFO for extemal reporting purposes. The following information is available for 2019 and 2020: 12/31/2019 12/31/2020 Inventory (under FIFO) $157,000 $181.000 Inventory (under LIFO) $145,000 $173,000 What is the approprierte joumal entry at 12/31/2020 to adjust the account balances from FIFO-based to LIFO-based amounts? Cost of Goods Sold 8,000 LIFO Reserve 8,000 Cost of Goods Sold LIFO Reserve 4,000 4,000 LIFO Reserve Cost of Goods Sold 8,000 8,000 LIFO Reserve Cost of Goods Sold 4,000 4,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Air