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.
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Sales
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21,400 units
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$70
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Inventory, Jan 1
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6,620 units
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28
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Purchases
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31
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35
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42
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Inventory, December 31
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?
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Operating Expenses
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280, 200
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Prepare a condensed income statement for the year on both bases for comparative purposes.
How do i Solve COGS for FIFO and LIFO on the income statement?