Lisa Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased

Question:

Lisa Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Lisa had 80 units in .

Instructions
(a) Compute the cost of the and the cost of goods sold under
(1) FIFO,
(2) LIFO,
(3) average-cost.
(b) Which cost flow method would result in the highest net income?
(c) Which cost flow method would result in inventories approximating current cost in the balance sheet?
(d) Which cost flow method would result in Lisa paying the least taxes in the first year?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...