Ichiro corporation | Accounting homework help

(FIFO and LIFO; Income Statement Presentation) The board of directors of Ichiro Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available.

 

 

 

 

 

 

 

 

 

Instructions

Sales 21,000 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 8,000 units @ ? Operating expenses $200,000

epa e a condensed income statement for the year on both bases for comparative purposes.