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Required: 1. Restate the income statement to reflect LCM valuation of the ending inventory Apply...

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Accounting

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Required: 1. Restate the income statement to reflect LCM valuation of the ending inventory Apply LCM on an tem-by-item basis MONDETTA CLOTHING Income Statement (LCM basis) For the Year Ended December 31 Net Sales $ 404,000 Cost of Goods Sold: $ 41,000 265,000 306,000 54,240 Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income 139,360 89,000 50,360 15,108 $ 35,252 2. Compare the LCM effect on each amount that was changed in requirement 1. (Decreases should be indicated by a minus sign Amount of FIFO Cost LCM Basis Increase Item Changed Basis Ending Inventory Cost of Goods Sold Gross Profit Income from Operations Income Tax Expense Net Income

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