AAA Hardware uses the LIFO method to report its inventory. Inventory at the beginning of the year consisted of 21,000 un

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Aaa Hardware Uses The Lifo Method To Report Its Inventory Inventory At The Beginning Of The Year Consisted Of 21 000 Un 1 (88.8 KiB) Viewed 43 times

AAA Hardware uses the LIFO method to report its inventory. Inventory at the beginning of the year consisted of 21,000 units of the company's one product. These units cost $10 each. During the year, 71,000 units were purchased at a cost of $13 each and 72,000 units were sold. Near the end of the fiscal year, management is considering the purchase of an additional 8,000 units at $13. Required: 1. What would be the effect of this purchase on income before income taxes? 2. What would be the effect of this purchase on income before income taxes using FIFO? 1. Income before income taxes would be 2. Income before income taxes would be