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7 value: 17.00 points Smart Company prepared its annual financial statements dated December...

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Accounting

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7 value: 17.00 points Smart Company prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to apply LCM to the ending inventory. The preliminary income statement follows $288,000 Sales Revenue Cost of Goods Sold Beginning Inventory Purchases $34,000 190,000 Goods Available for Sale Ending Inventory (FIFO cost) 224,000 99,400 Cost of Goods Sold 124,600 Gross Profit Operating Expenses 163,400 65,000 Income from Operations Income Tax Expense (30%) 98,400 29,520 Net Income $ 68,880 Assume that you have been asked to restate the financial statements to incorporate LCM. You have developed the following data relating to the ending inventory: Market Value per Unit Purchase Cost Total $ 9,200 Item Quantity Per Unit 2,300

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