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Unformatted text preview: three requirements should be typed. Cost of Rachel Riddle Accounting 240 Section 003 11-8-06 Ending Inventory Goods Sold Total FIFO 20,000 79,000 99,000 LIFO 29,000 70,000 99,000 Weighted Average 33,000 66,000 99,000 2. What does the Total column represent? The total represents the amount of goods available for sale. 3. Using the data provided and your Cost of Goods Sold amounts in the table above, prepare a multiple-step income statement for EACH of the three methods. 4. Will the company pay more or less in taxes if it uses FIFO as compared to LIFO? How much more or less? Rachel Riddle Accounting 240 Section 003 11-8-06 The company will pay less in taxes using FIFO because of deflation. The company is paying $2,700 less....
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