Question
Sunland Company has been using the LIFO method of inventory valuation for 10 years, since it began operations. Its 2020 ending inventory was $53500, but
Sunland Company has been using the LIFO method of inventory valuation for 10 years, since it began operations. Its 2020 ending inventory was $53500, but it would have been $88500 if FIFO had been used. Thus, if FIFO had been used, Sunland's income before income taxes would have been
$35000 less over the 10-year period.
$35000 greater in 2020.
$35000 less in 2020.
$35000 greater over the 10-year period.
Bonita Industries uses the periodic inventory system. For the current month, the beginning inventory consisted of 487 units that cost $69 each. During the month, the company made two purchases: 722 units at $72 each and 364 units at $74 each. Bonita Industriesalso sold 1202 units during the month. Using the FIFO method, what is the amount of cost of goods sold for the month?
$86924.
$85979.
$85083.
$82938.
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