Compute the data for Skysong Company

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Question - Skysong Company is considering changing its inventory valuation method from FIFO to LIFO because of the potential tax savings. However, management wishes to consider all of the effects on the company, including its reported performance, before making the final decision.

The inventory account, currently valued on the FIFO basis, consists of 1,000,000 units at $8 per unit on January 1, 2020.

 

2020

2021

2022

Unit sales (in millions of units)

1.7

1.6

1.9

Sales price per unit

$10

$12

$12

Unit purchases (in millions of units)

1.6

1.7

1.8

Purchase price per unit

$8

$9

$10

Required - Compute the following data for Skysong Company under the FIFO and the LIFO inventory method for 2020-2022 (Enter amounts in thousands. Round earnings per share values to 2 decimal places, e.g. 52.75. Round other answers to 0 decimal places, e.g. 125.). Assume the company would begin LIFO at the beginning of 2020.

Reference no: EM132873176

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