True or False? With inflation, LIFO will result in lower lost of sales than FIFO?

True or False?

With inflation, LIFO will result in lower lost of sales than FIFO?

Expert Solution

ekkarill92 answered 2 years ago

Will the results in (a) be higher or lower than the results under FIFO and LIFO?...

Will the results in (a) be higher or lower than the results under FIFO and LIFO? Whispering Winds Corp. uses the periodic inventory system and reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 300 $4 $ 1,200 12 Purchase 600 9 5,400 23 Purchase 450 10 4,500 30 Inventory 150 Part 1 Calculate Weighted Average Unit Cost. (Round answer to 2 decimal places, e.g. 15.25.) Weighted Average Unit Cost $enter Weighted Average...

1. Between FIFO or LIFO, which method would result in the lower income tax expense? &...

1. Between FIFO or LIFO, which method would result in the lower income tax expense? & What is the tax savings amount? Assume a 30 percent average tax rate. (Round your answer to 2 decimal places.) At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $16 per unit: Transactions Units Amount Inventory, January 1 500 $ 2,365 Purchase, January 12 600 3,600 Purchase, January 26...

true or false? lower operating leverage protects the operation when sales are low

True or False: Explain your answer If wages in nation 1 are lower than wages in...

True or False: Explain your answer If wages in nation 1 are lower than wages in nation 2, but labor productivity is much higher in nation 2, labor costs are not necessarily higher in nation 2.

In your own words, describe FIFO, LIFO, Weighted Average, and Lower of cost or market inventory...

In your own words, describe FIFO, LIFO, Weighted Average, and Lower of cost or market inventory valuations.Next pick two different companies in the same type of industry using two different inventory valuation methods and compare them. Examples of questions to be thinking about are: Why would one company use one method over another? How does the inventory method effect the net income/loss and COGS? What would happen if the companies changed their method of valuation?

E5.7 Calculate inventory and cost of sales using FIFO, LIFO and average cost.

E5.7 Calculate inventory and cost of sales using FIFO, LIFO and average cost. Fenning Pty Ltd reports the following for the month of June: Required a. Calculate cost of the ending inventory and the cost of sales under (1) FIFO, (2) LIFO and (3) average cost b. Which costing method gives the highest ending inventory and the highest cost of sales? Why? c. How do the average cost values for ending inventory and cost of sales compare with ending inventory and cost of sales for FIFO and...

True or False. If profit and wages are both rising during inflation, the inflation must be...

True or False. If profit and wages are both rising during inflation, the inflation must be a cost-pushed inflation.

When costs to purchase inventory are rising, using LIFO leads to reporting a ______ than FIFO....

When costs to purchase inventory are rising, using LIFO leads to reporting a ______ than FIFO. lower value for inventory on the balance sheet higher value for inventory on the balance sheet lower value for inventory on the income statement higher value for inventory on the income statement

Why would roa be lower for a company going through inflation using FIFO if net income...

Why would roa be lower for a company going through inflation using FIFO if net income and assets are rising rather then if they used LIFO method. Shouldn’t a company with a higher net income and average total asset give a higher ROA than the company using LIFO? And how would EPS and debt to equity be affected if fifo and lifo is used. Please be as clear as you are able to. Thanks

A topspin will result in less pressure on the bottom of the ball true or false

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