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Required information [The following information applies to the questions displayed below. Broadhead Company uses a periodic inventory system. At the end of the annual accounting
Required information [The following information applies to the questions displayed below. Broadhead 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 2,860 Unit Cost $ 14 12 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($51 each) Operating expenses (excluding income tax expense) 8,870 7,980 10,830 $186,500 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Case A Case B FIFO LIFO Difference Pretax income Ending inventory
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