Eneri Company's inventory records show the following data: $\begin{array}{lcrr}&\text { Units }&\text { Unit Cost }\
\text { Inventory, January 1 } & 10,000 & \$ 9.20 \
\text { Purchases: } \text { June 18 } & 9,000 & 8.00 \
\text { November 8 } & 6,000 & 7.00
\end{array}$ A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. What is the difference in taxes if LIFO rather than FIFO is used?

Question

Eneri Company's inventory records show the following data: $\begin{array}{lcrr}&\text { Units }&\text { Unit Cost }\
\text { Inventory, January 1 } & 10,000 & \$ 9.20 \
\text { Purchases: }  \text { June 18 } & 9,000 & 8.00 \
 \text { November 8 } & 6,000 & 7.00
\end{array}$ A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. What is the difference in taxes if LIFO rather than FIFO is used?

Quizplus · Accepted Answer

The Answer of Eneri Company's inventory records show the following data: $\begin{array}{lcrr}&\text { Units }&\text { Unit Cost }\
\text { Inventory, January 1 } & 10,000 & \$ 9.20 \
\text { Purchases: }  \text { June 18 } & 9,000 & 8.00 \
 \text { November 8 } & 6,000 & 7.00
\end{array}$ A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. What is the difference in taxes if LIFO rather than FIFO is used?

Eneri Company's Inventory Records Show the Following Data A Physical Inventory on December 31 Shows 4,000 Units on Units