Question
Required information E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3 Skip to question [The following information applies to
Required information
E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3
Skip to question
[The following information applies to the questions displayed below.]
Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:
Units | Unit Cost | ||||||||
Inventory, December 31, prior year | 2,920 | $ | 12 | ||||||
For the current year: | |||||||||
Purchase, April 11 | 8,810 | 13 | |||||||
Purchase, June 1 | 7,900 | 18 | |||||||
Sales ($57 each) | 10,830 | ||||||||
Operating expenses (excluding income tax expense) | $ | 187,000 | |||||||
E7-7 Part 1
Required:
1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.
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