Element Company uses a periodic inventory system. At the end of the annual accou

Question

Element Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2012, the accounting records provided the following information for product 2:

Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. (Input all amounts as positive values. Omit the "$" sign in your response.)

Element Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2012, the accounting records provided the following information for product 2:

Explanation / Answer

As per FIFO

Ending Inventory = 8000*17+ 930*12 = $147,160

As per LIFO

Ending Inventory = 2910*14+ 6020*12 = $112,980

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