Carboni Company had the following data available for the current month:
Assume 40 units were sold during the month.Sales Revenue for the month is $7,000 and operating expenses are $2,200.The income tax rate is 30%.
Required:
1.Compute Cost of Goods Sold using:
a.FIFO
b.LIFO
2.How much would Carboni Company save in income taxes if they used LIFO instead of FIFO?

Question

Carboni Company had the following data available for the current month:
  Assume 40 units were sold during the month.Sales Revenue for the month is $7,000 and operating expenses are $2,200.The income tax rate is 30%.
Required:
1.Compute Cost of Goods Sold using:
a.FIFO
b.LIFO
2.How much would Carboni Company save in income taxes if they used LIFO instead of FIFO?

Quizplus · Accepted Answer

The Answer of Carboni Company had the following data available for the current month:
  Assume 40 units were sold during the month.Sales Revenue for the month is $7,000 and operating expenses are $2,200.The income tax rate is 30%.
Required:
1.Compute Cost of Goods Sold using:
a.FIFO
b.LIFO
2.How much would Carboni Company save in income taxes if they used LIFO instead of FIFO?

Carboni Company Had the Following Data Available for the Current