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Question - Ehlo Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye:
1/1 Beginning inventory 1,000 @ $12
2/4 Purchase 2,000 @ $ 18
2/20 Sale 2,500 @ $ 30
4/2 Purchase 3,000 @ $ 23
11/4 Sale 2,200 @$33
Compute Ending inventory, assuming Ehlo uses:
Periodic system, FIFO cost flow.
Periodic system, LIFO cost flow.
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Why is it so subjective and what are the implications to the quality of the income statement?
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