What net income would have been if the lifo cost method used

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Reference no: EM13872487

Purpose: This exercise will illustrate the effect on net income when the LIFO cost method rather than the FIFO cost method is used in a period of rising prices. It also requires you to examine the effect of both the beginning inventory and the ending inventory on the net income computation.

Using the FIFO cost method, Rasulo Company had a beginning inventory of $24,000, ending inventory of $30,000, and net income of $80,000. If Rasulo had used the LIFO cost method, the beginning inventory would have been $20,000 and the ending inventory would have been
$23,000.

Instructions

Compute what net income would have been if the LIFO cost method had been used.

Reference no: EM13872487

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