Question: Following is partial information for the statement of earnings of

Following is partial information for the statement of earnings of Timber Company under two different inventory costing methods, assuming the use of a periodic inventory system:
Required:
1. Compute the cost of sales under the FIFO and weighted- average inventory costing methods.
2. Prepare a statement of earnings through pretax earnings for each method.
3. Rank the two methods with regard to favourable cash flow, and explain the basis for your ranking.

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  • CreatedAugust 04, 2015
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