The board of directors of Sarasota Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO)
The board of directors of Sarasota Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available.
| Sales | 20,900 | units @ | $51 | |
| Inventory, January 1 | 5,700 | units @ | 20 | |
| Purchases | 6,200 | units @ | 22 | |
| 10,500 | units @ | 25 | ||
| 7,100 | units @ | 30 | ||
| Inventory, December 31 | 8,600 | units @ | ? | |
| Operating expenses | $202,000 |
Prepare a condensed income statement for the year on both bases for comparative purposes.
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Authors: U. S. Government Accountability Office
1st Edition
1287232027, 978-1287232025
