Question
Ranger Puzzles makes high-quality wooden puzzles for children. Ranger started operation on June 1st, 20X9 and uses the LIFO (rather than the FIFO) inventory cost
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Ranger Puzzles makes high-quality wooden puzzles for children. Ranger started operation on June 1st, 20X9 and uses the LIFO (rather than the FIFO) inventory cost flow assumption. Given that prices have been rising through the year, what will be true of Rangers financial statements at December 31st, 20X9?
Ranger will have a lower cost of goods sold and a lower ending inventory under LIFO than it would under FIFO.
Ranger will have a higher cost of goods sold and a lower ending inventory under LIFO than it would under FIFO.
Ranger will have a higher cost of goods sold and a higher ending inventory under LIFO than it would under FIFO.
Ranger will have a lower cost of goods sold and a higher ending inventory under LIFO than it would under FIFO.
Ranger Puzzles makes high-quality wooden puzzles for children. Ranger started operation on June 1st, 20X9 and uses the LIFO (rather than the FIFO) inventory cost flow assumption. Given that prices have been rising through the year, what will be true of Rangers financial statements at December 31st, 20X9?
| Ranger will have a lower cost of goods sold and a lower ending inventory under LIFO than it would under FIFO. | ||
| Ranger will have a higher cost of goods sold and a lower ending inventory under LIFO than it would under FIFO. | ||
| Ranger will have a higher cost of goods sold and a higher ending inventory under LIFO than it would under FIFO. | ||
| Ranger will have a lower cost of goods sold and a higher ending inventory under LIFO than it would under FIFO. |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
