Prepare comparative condensed income statements

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Reference no: EM131222586

The management of Tinker Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2014, the accounting records show these data. Inventory, January 1 (10,000 units) $ 35,000 Cost of 120,000 units purchased 474,740 Selling price of 98,600 units sold 757,500 Operating expenses 129,500 Units purchased consisted of 34,200 units at $3.80 on May 10; 60,400 units at $3.90 on August 15; and 25,400 units at $4.30 on November 20. Income taxes are 30%. (a) Prepare comparative condensed income statements for 2014 under FIFO and LIFO.

Reference no: EM131222586

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