Question1 In periods of rising prices, which method results in the lowest taxabl

Question

Question1 In periods of rising prices, which method results in the lowest taxable income? A FIFO B. LIFO C C. Weighted Average D. Can not be determined Question 2 LIFO Reserve.1 How to covert COGS under LIFO to COGS under FIFO? A. Add the change in the LIFO reserve to COGS under LIFO to yield COGS under FIFO B. Deduct the change in the LIFO reserve from COGS under LIFO to yield COGS under FIFo C. Neither of the above. D. Either of the above. Question.3 The Stevens Co. had beginning inventory (1/1/10 of 8 units at $100, purchased 10 units of inventory at $120 on 3/1/10, and another 12 units at $110 on 5/1/JQEnding inventory consisted of 14 units. What is the cost of ending inventory under FIFO? A. $1280 B. $1540 C. $1560 D. $3320

Explanation / Answer

1 A. FIFO 2 B. Dedct the change in the LIFO reserve from COGS under LIFO to yield COGS under FIFO 6 A. $ 16000 40000*40% 7 C. When interest cost is being incurred 9 D. Cash 5000 Accumulated Dep 3000 Loss on Sale 2000 To Equipment 10000

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