ACCT212 Financial Accounting Assignment

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ACCT212 Financial Accounting Assignment - DeVry University, USA

Question - ABC Company has the following record for inventory. On June 1, beginning inventory was 14 units at $42, a purchase was made June 2 for four units at $69, a sale was made on June 7 for seven units for $111, and a final sale was made on June 13 for five units for $111. What amounts should the company report for ending inventory and cost of goods sold under the FIFO method and the LIFO method? Which method would result in the lowest net income and tax if everything else is equal? How did you determine the method that would result in the lowest net income and tax?

Reference no: EM132454001

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