Question

In 2013, Mandrake Motorcycles declared bankruptcy. Subsequently, it was determined that in fiscal 2012, the company produced more units than needed to fill pending orders. The result was a substantial decrease in production cost per unit. The company uses the LIFO inventory method.

Required
Discuss how (or if) this information is consistent with the results of the analysis conducted in Problem, parts a and b.


Mandrake Motorcycles
Income Statements



Mandrake Motorcycles was started three years ago. The company manufactures and sells “classic” cycles similar in style to Harley-Davidson and Indian motorcycles made in the late 1940s.The following financial information for thecompany.


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  • CreatedSeptember 23, 2013
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