Problem#2: EFFECT of LIFO/ FIFO on FINANCIAL STATEMENT REPORTING

Required:

Assuming that prices are falling, indicate the impact of LIFO Vs FIFO on the following (which one is higher and which one is lower):

	LIFO	FIFO
COGS
Ending Inventory
Income Taxes

Inventory data for Williams Door Products Corporation for the month of October are as follows:

Merchandise inventory, October 1 50 units at $140 each

October 8 purchase 50 units at $155 each

October 15 purchase 55 units at $160 each

October 22 purchase 60 units at $170 each

October 29 purchase 55 units at $175 each