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Unformatted text preview: goods purchased remain in inventory, which causes the inventory on the balance sheet to be close to current costs. The opposite is true of the LIFO method. The company that will probably have the higher gross profit between the two will be the Alpha Company because the cost of goods sold will have a higher number of goods purchased at lower costs earlier on....
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This note was uploaded on 04/29/2008 for the course AC 11 taught by Professor Kravet during the Fall '07 term at Fairfield.
- Fall '07
- Financial Accounting