(20pts) A gasoline distributor had 110,000 gallons of gasoline valued at $2.35/gallon. They bought 120,000 more...

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(20pts) A gasoline distributor had 110,000 gallons of gasoline valued at $2.35/gallon. They bought 120,000 more gallons at $2.45/gallon, and subsequenly 100,000 more gallons Split equally at $2.75 each. After that, they sold 180,000 gallons at $3.25 each. Their selling and administrative expenses are $25,000 and their tax rate is 25%. Will they pay more taxes if they value their inventory using FIFO or LIFO, and what will be the difference between the two methods? (20pts) A gasoline distributor had 110,000 gallons of gasoline valued at $2.35/gallon. They bought 120,000 more gallons at $2.45/gallon, and subsequenly 100,000 more gallons Split equally at $2.75 each. After that, they sold 180,000 gallons at $3.25 each. Their selling and administrative expenses are $25,000 and their tax rate is 25%. Will they pay more taxes if they value their inventory using FIFO or LIFO, and what will be the difference between the two methods?

Answer rating: 100% (QA)

To determine whether the gasoline distributor will pay more taxes using FIFO or LIFO we must compute the cost of goods sold COGS using each method FIF... View the full answer