LIFO and LIFO, Income Statement Presentation) The board of directors of Oksana Corporation is considering whether or not it should instruct the accounting department to change from a first in, first out (FIFO) basis of pricing inventories to a last in, first out (LIFO) basis. The following information is available.
|
Sales |
20,000 units @ $50 |
|
Inventory, January 1 |
6,000 units @ 20 |
|
Purchases |
6,000 units @ 22 |
|
10,000 units @ 25 |
|
|
7,000 units @ 30 |
|
|
Inventory, December 31 |
9,000 units @ ? |
|
Operating expenses |
$200,000 |
Instructions
Prepare a condensed income statement for the year on both bases for comparative purposes.