The management of Swifty Inc. is reevaluating the appropriateness of using its present inventory cost flow...

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The management of Swifty Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average- cost. The company requests your help in determining the results of operations for 2022 if either the FIFO or the LIFO method had been used. For 2022, the accounting records show these data: Inventories Purchases and Sales Beginning (8,000 units) $32,000 Total net sales (185,000 units) $1,137,750 Ending (13,000 units) Total cost of goods purchased (190,000 units) 846,000 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 1 50,000 $4.20 $210,000 2 40,000 4.35 174,000 3 40,000 4.50 180,000 4 60,000 4.70 282,000 190,000 $846,000 Operating expenses were $130,000, and the company's income tax rate is 40%. (a) Your Answer Correct Answer Prepare comparative condensed income statements for 2022 under FIFO and LIFO. SWIFTY INC. Condensed Income Statements December 31, 2022 For the Year Ended December 31, 2022 For the Month Ended December 31, 2022 SA LIFO The management of Swifty Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average- cost. The company requests your help in determining the results of operations for 2022 if either the FIFO or the LIFO method had been used. For 2022, the accounting records show these data: Inventories Purchases and Sales Beginning (8,000 units) $32,000 Total net sales (185,000 units) $1,137,750 Ending (13,000 units) Total cost of goods purchased (190,000 units) 846,000 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 1 50,000 $4.20 $210,000 2 40,000 4.35 174,000 3 40,000 4.50 180,000 4 60,000 4.70 282,000 190,000 $846,000 Operating expenses were $130,000, and the company's income tax rate is 40%. (a) Your Answer Correct Answer Prepare comparative condensed income statements for 2022 under FIFO and LIFO. SWIFTY INC. Condensed Income Statements December 31, 2022 For the Year Ended December 31, 2022 For the Month Ended December 31, 2022 SA LIFO