Question: Comparing LIFO and FIFO, which cost flow assumption will give you higher COGS? Higher Inventory? Why?

Comparing LIFO and FIFO, which cost flow assumption will give you higher COGS? Higher Inventory? Why?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

FIFO FirstIn FirstOut and LIFO LastIn FirstOut are two inventory cost flow assumptions that impact the Cost of Goods Sold COGS and ending inventory va... 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 (2 attachments)

66429dafa043c_977778.pdf

180 KBs PDF File

66429dafa043c_977778.docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Cost flow assumptionsFIFO and LIFO using a periodic system Mower-Blower Sales Co. started business on January 20, 2013. Products sold were snow blowers and lawn mowers. Each product sold for $700....

Late in the year, Software City began carrying Word Crafter, a new word processing software program. At December 31, Software Citys perpetual inventory records included the following cost layers in...

Companies use different costing methodologies based on their business models. The most common methods are: FIFO- First In, First Out LIFO- Last In, Last Out Weighted Average Specific Identification...

Periodic Cost Flows Usman Ltd provided the following information: 1. Assuming FIFO periodic cost flow assumption, what will be the COGS in FY 2017? 2. Assuming FIFO periodic cost flow assumption,...

I need answers to these. Show work when necessary. Please work out all problems. Name______________________ ACC121 Comprehensive Final Multiple choice 5 points each 325 points 1. Which financial...

Ranger Puzzles makes high-quality wooden puzzles for children. Ranger started operation on June 1st, 20X9 and uses the LIFO (rather than the FIFO) inventory cost flow assumption. Given that prices...

Question 28 Q: If COGAS is $1,137 and the value of ending inventory under periodic FIFO is $319, what is FIFO COGS? 816 817 818 819 1 points Question 29 Q: Which of the following is NOT true of a...

Question 9 2 points ABC Corporation begins the month of April with inverfory valued at 8.000. Inventory at April 30 is 57.500. Purchases during the month totaled $57,000. What is the company's cost...

a. During a period of rising purciia.se prices, will a FIFO or a LIFO cost flow assumption result in the higher cost of goods sold? the lower cost of goods sold? Assume no changes in physical...

a. During a period of rising purchase prices, will a FIFO or a LIFO cost flow assumption result in the higher cost of goods sold? the lower cost of goods sold? Assume no changes in physical...

Under the specific-identification method, the physical flow of goods through the business will: A) have no relationship to the flow of costs through the accounting records. B) closely match the flow...

Brexit scandal: The role of Cambridge Analytica and Aggregate IQ One of the benefits and vital business impacts that information systems bring is the use of big data (macro data). Search trusted...

Find g ( x ) for g ( x ) = 7 x ^ 2 2 x ^ ( 1 / 4 ) . g ( x ) =

Recall Question 9.2.6. Compare the ages at death for authors noted for alcohol abuse with the ages at death for authors not noted for alcohol abuse using a Wilcoxon rank sum test. Let = 0.05.

For this exercise, your client, Bright IDEAs Inc., has provided you with data for two related files, a listing of sales invoices, and a listing of customers with credit limits. To test whether credit...

The following transactions took place at Eddie's Sports Gear during the first week of October 2016. Indicate how these transactions would be entered in a cash receipts journal. DATE TRANSACTIONS Oct....

Jarem Company showed $189,000 in prepaid rent on December 31, 2015. On December 31,2016, the balance in the prepaid rent account was $226,800. Rent expense for 2016 was $472,500. Required: 1. What...

Lehighton Chalk Company manufactures blackboard chalk for educational uses. The company's product is sold by the box at $50 per unit. Lehighton uses an actual costing system, which means that the...

6 Theory of Machines 5. A shaft carries five masses A, B, C, D and E which revolve at the same radius in planes which are equidistant from one another. The magnitude of the masses in planes A, C and...

The following trial balance was prepared from the ledger accounts of Klein Inc. The accountant for Klein Inc. made the following errors during May, Year 1: 1. The cash purchase of land for $3,000 was...

On October 1, Year 1, Nicholes Corporation declared a $50,000 cash dividend to be paid on December 15 to shareholders of record on November 1. Required Record the events occurring on October 1,...

The following ratios are for four companies in different industries. Some of these ratios have been discussed in the textbook, others have not, but their names explain how the ratio was computed....

35. Sokas et al. (A-37) reported on a study in which second-year medical students participated in a training program that focused on the risks of bloodborne-disease exposure and the techniques of...

31. Systemic vascular resistance determinations were made on a sample of 16 patients with chronic, congestive heart failure while receiving a particular treatment. The sample mean and standard...

26. In a sample of 150 hospital emergency admissions with a certain diagnosis, 128 listed vomiting as a presenting symptom. Do these data provide sufficient evidence to indicate, at the .01 level of...