Question: Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results. 1. In each space below, place the correct sign
Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results.
1. In each space below, place the correct sign [less than (<), greater than (>), or equal (=)] for each comparison, assuming periods of rising prices.
a. FIFO inventory _________ LIFO inventory
b. FIFO cost of goods sold ________ LIFO cost of goods sold
c. FIFO net income _________ LIFO net income
d. FIFO income tax ___________ LIFO income tax
2. Why would management prefer to use LIFO over FIFO in periods of rising prices?
1. In each space below, place the correct sign [less than (<), greater than (>), or equal (=)] for each comparison, assuming periods of rising prices.
a. FIFO inventory _________ LIFO inventory
b. FIFO cost of goods sold ________ LIFO cost of goods sold
c. FIFO net income _________ LIFO net income
d. FIFO income tax ___________ LIFO income tax
2. Why would management prefer to use LIFO over FIFO in periods of rising prices?
Step by Step Solution
★★★★★
3.33 Rating (153 Votes )
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
1 a FIFO inventory greater than LIFO inventory b FIFO cost of goods sold less t... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Document Format (1 attachment)
275-B-A-C-R (1853).docx
120 KBs Word File