Question: Refer to the preceding problem Suppose Texas Instruments had acquired
Refer to the preceding problem. Suppose Texas Instruments had acquired 50 extra units @ $8 each on December 30, 2011, at a total additional cost of $400. How would income before income taxes have been affected under FIFO? That is, compare FIFO results before and after the purchase of 50 extra units. Under LIFO? That is, compare LIFO results before and after the purchase of 50 extra units. Show computations and explain.
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