Question: Question: a. Assuming that Fix-IT Inc. adopts the FIFO inventory system, calculate the cost of goods sold for FY 2021. b. Assuming that Fix-IT Inc.

Question:

a. Assuming that Fix-IT Inc. adopts the FIFO inventory system, calculate the cost of goods sold for FY 2021.

b. Assuming that Fix-IT Inc. adopts the LIFO inventory system, calculate the cost of goods sold for FY 2021.

c. Assuming all other things equal, how would taxable income for FY 2021 differ under 1 and 2? In other words, under which method would Fix-IT Inc. have a lower tax expense?

Question: a. Assuming that Fix-IT Inc. adopts the

QUESTION I: FIX-IT INC. (20 points) Fix-IT Inc., whose fiscal year ends on December 31, is a company that specializes in selling refurbished smartphones. It buys old and broken smartphones and resells the fixed Smartphones. Assume that the beginning balance of its inventory for FY 2021 was 0. Below is its inventory purchase schedule for FY 2021: Date Unit Cost Quantity January 16, 2021 $50 200 June 1, 2021 $40 180 August 31, 2021 $45 30 September 22, 2021 $35 120 December 3, 2021 $35 60 In addition, below is its sales transactions for FY 2021: Date Unit Price Quantity May 9, 2021 $70 150 November 21, 2021 $80 300 December 25, 2021 $75 70

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