Carbondale Company had the following data available for the last six months:
Operating expenses are $2,000 per month.The income tax rate is 30%.
Required:
1.Compute Cost of Goods Sold for the six months ending June 30 using:
a.FIFO perpetual
b.LIFO perpetual
2.How much will the company save in income taxes if they use LIFO instead of FIFO?

Question

Carbondale Company had the following data available for the last six months:
  Operating expenses are $2,000 per month.The income tax rate is 30%.
Required:
1.Compute Cost of Goods Sold for the six months ending June 30 using:
a.FIFO perpetual
b.LIFO perpetual
2.How much will the company save in income taxes if they use LIFO instead of FIFO?

Quizplus · Accepted Answer

The Answer of Carbondale Company had the following data available for the last six months:
  Operating expenses are $2,000 per month.The income tax rate is 30%.
Required:
1.Compute Cost of Goods Sold for the six months ending June 30 using:
a.FIFO perpetual
b.LIFO perpetual
2.How much will the company save in income taxes if they use LIFO instead of FIFO?

Carbondale Company Had the Following Data Available for the Last