How much would be the tax savings realized

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Reference no: EM132810299

Question

Assuming the company is subject to 30% tax rate.

	Date	Units	Unit Price
Beginning Inventory	Jan. 1, 2020	100	P 3,200
Purchases	Jan. 3, 2020	90	3,000
	Jan. 10, 2020	55	2,300
	Jan. 18, 2020	80	5,500
Sales	Jan.13, 2020	150	9,500
	Jan. 26, 2020	120	10,500

On the inventory sold, 90 can from beginning inventory, 70 came from Jan 3 purchase, 45 from Jan 10 purchase 65 from Jan 18 purchase.

Using Weighted Average Cost method, what is the cost of ending inventory?

Using LIFO method, what is the cost of ending inventory?

Using Specific Identification method, what is the cost of goods sold?

What is the approximate net income after tax under the FIFO method?

How much would be the tax savings realized by the company if they shift from FIFO to Weighted Average Costing method?

How much would be the tax savings realized by the company if they shift from FIFO to LIFO method?

Reference no: EM132810299

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