QUESTION 9 Not changed since last attempt Points out of 5.00 Flag question Inventory Valuation and Earnings Dominick Portet Wines Inc. began operations to import fine wines from Australia to the United States Sales and purchase information is provided below Year 1 Year 2 Year 3 s Units 440 500 $10 400 $10 120 Units s Units Sales Purchases LIFO ending inventory 160 340 600 $8 ? a 15 $10 Assume that Portet Wines uses the LIFO method of inventory valuation. The purchase amount for Year 3 has been left blank because Portet Wines has not yet decided the total number of units to purchase during the year. (Assume that all sales occur on the last day of the year, after all purchases for the year have been made. The company's year-end is December 31.) Required 1. How many units should be purchased in Year 3 if the firm's objective is to maximize reported income for the year? 2. Compute the cost of goods sold for Year 3 assuming the number of units computed in (1) is purchased 3. How many units should be purchased in Year 3 if the firm's objective is to minimize income taxes for the year? QUESTION 9 Not changed since last attempt Points out of 5.00 Flag question Inventory Valuation and Earnings Dominick Portet Wines Inc. began operations to import fine wines from Australia to the United States Sales and purchase information is provided below Year 1 Year 2 Year 3 s Units 440 500 $10 400 $10 120 Units s Units Sales Purchases LIFO ending inventory 160 340 600 $8 ? a 15 $10 Assume that Portet Wines uses the LIFO method of inventory valuation. The purchase amount for Year 3 has been left blank because Portet Wines has not yet decided the total number of units to purchase during the year. (Assume that all sales occur on the last day of the year, after all purchases for the year have been made. The company's year-end is December 31.) Required 1. How many units should be purchased in Year 3 if the firm's objective is to maximize reported income for the year? 2. Compute the cost of goods sold for Year 3 assuming the number of units computed in (1) is purchased 3. How many units should be purchased in Year 3 if the firm's objective is to minimize income taxes for the year