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The management of Wildhorse Co, is reevaluating the appropriateness of using its present inventory cost flow method, which is average cost. The company requests your

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The management of Wildhorse Co, is reevaluating the appropriateness of using its present inventory cost flow method, which is average cost. The company requests your help in determining the results of operations for 2019 if either the FIFO or the LIFO method had been used. For 2019, the accounting records show these data: Inventories Beginning (3,850 units) Ending (9,350 units) $7,700 Purchases and Sales Total net sales (99,000 units) Total cost of goods purchased (104,500 units) $410,850 308,550 Purchases were made quarterly as follows. Quarter Units 1 Unit Cost $2.70 2.85 3.00 27,500 22,000 22,000 33,000 2 Total Cost $74,250 62,700 66,000 105,600 $308,550 3 4 3.20 104,500 Operating expenses were $110,000, and the company's income tax rate is 40%. Condensed Income Statements FIFO LIFO $

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