Thaam Company Ltd. had 100 units in beginning inventory at a total cost of NT$300,000. The company purchased 200 units at a total cost of NT$680,000. At the end of the year, Thaam had 75 units in ending inventory. Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) average-cost. (b) Which cost fl ow method would result in the higher net income? (c) Which cost fl ow method would result in inventories approximating current cost in the statement of fi nancial position? (d) Which cost fl ow method would result in Thaam paying fewer taxes in the fi rst year?

E6-7 Thaam Company Ltd. had 100 units in beginning inventory at a total cost of NT$300,000. The company purchased 200 units at a total cost of NT$680,000. At the end of the year, Thaam had 75 units in ending inventory. Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) average-cost. (b) Which cost flow method would result in the higher net income? (c) Which cost flow method would result in inventories approximating current cost in the statement of financial position? (d) Which cost flow method would result in Thaam paying fewer taxes in the first year