Required information E7-8 Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO L07-2,7-3 (The following information applies to the questions displayed below) Beck Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units 6,300 Unit Coat $13 Inventory, December 31, prior year For the current year! Purchase, March 5 Purchase, September 19 Sale ($30 each) Sale ($32 each) Operating expanden (excluding income tax expenne) 11 7 18,300 9,300 8,500 15,300 $393,000 E7-8 Part 2 2. Compute the difference between the pretax income and the ending inventory amounts for the two cases. (Negative amount should be indicated with a minus sign.) Comparison of Amounts Casca Case FIFO LIFO Difference Protax income Ending inventory Parson Company was formed on January 1 of the current year and is preparing the annual financial statements dated December 31, current year. Ending inventory information about the four major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Net Realizable Quantity Unit Cost When Value (Market) on Hand Acquired (FIFO) at Year-End 30 $ 20 5 25 65 50 54 45 67 65 20 37 42 Item A B D Required: 1. Compute the valuation that should be used for the current year ending inventory using the LCM rule applied on an item-by Item basis. Item Quantity Total Cost Total Market LCM Valuation 30 65 <.00 total what will be the effect of write-down inventory to lower cost or market on goods sold for year ended december current by amount>