Question

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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