Given the following? information, calculate the amount by which net income would

Question

Given the following? information, calculate the amount by which net income would differ between FIFO and? LIFO: Assume the periodic system.

Beginning inventory 3 ,000 units at $ 98 per unit

Purchases 8,100 units at $ 132 per unit

Units sold 5,800 units at $ 226 per unit

Calculate the cost of goods sold using the FIFO periodic cost flow assumption. FIFO Units x Cost per Unit = Total Cost Units from beginning inventory x = Units from purchase x = Cost of Goods Sold - FIFO method Calculate the cost of goods sold using the LIFO periodic cost flow assumption. ?(Enter 0's for any layers where there were no units? sold.) LIFO Units x Cost per Unit = Total Cost Units from purchase x = Units from beginning inventory x = Cost of Goods Sold - LIFO method

Net income would differ between FIFO and LIFO by ?$ ____.

Explanation / Answer

Net income would differ between FIFO and LIFO by ?663600-75600 =-102000

Qty Rate Amount Units from beginning inventory 3000 X 98 294000 Units from purchase 2800 X 132 369600 Cost of Goods Sold Under FIFO 663600

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