The management of Blue Spruce Corp. asks your help in determining the comparative effects of...
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Accounting
The management of Blue Spruce Corp. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods.
For 2017, the accounting records show these data. Inventory,
January 1 (9,520 units) $ 31,416
Cost of 127,290 units purchased 474,422
Selling price of 94,700 units sold 723,700
Operating expenses 113,570
Units purchased consisted of 35,360 units at $3.50 on May 10; 56,860 units at $3.70 on August 15; and 35,070 units at $4.00 on November 20. Income taxes are 26%.
(a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.)
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