FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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K High Life Company's inventory records for its retail division show the following at July 31: (Click the icon to view the accounting records.) At July 31, 11 of these units are on hand. High Life Company calculated its cost of goods sold using LIFO as $2,502 and its cost of goods sold using FIFO as $2,395. Read the requirement. How much in taxes would High Life Company, save by using the LIFO method versus FIFO? Sales revenue is $8,050, operating expenses are $1,800, and the income tax rate is 25%. (Round your answer to the nearest cent.) Difference in methods x Income tax rate (entered as a whole number) Tax savings using LIFO % Data table Jul 1 Beginning inventory Jul 15 Purchase Jul 26 Purchase 8 units @ $170 = $1,360 5 units @ $171 $855 12 units @$180 $2,160 Print Done - X
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Transcribed Image Text:K High Life Company's inventory records for its retail division show the following at July 31: (Click the icon to view the accounting records.) At July 31, 11 of these units are on hand. High Life Company calculated its cost of goods sold using LIFO as $2,502 and its cost of goods sold using FIFO as $2,395. Read the requirement. How much in taxes would High Life Company, save by using the LIFO method versus FIFO? Sales revenue is $8,050, operating expenses are $1,800, and the income tax rate is 25%. (Round your answer to the nearest cent.) Difference in methods x Income tax rate (entered as a whole number) Tax savings using LIFO % Data table Jul 1 Beginning inventory Jul 15 Purchase Jul 26 Purchase 8 units @ $170 = $1,360 5 units @ $171 $855 12 units @$180 $2,160 Print Done - X
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