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Unformatted text preview: COGS (AV.) = 13.92*(1800+2800) = $64,024.5 D. Net Income=Sale COGS Since the sale is the same, FIFO has smaller COGS than LIFO does. In this way, FIFO has a larger net income than LIFO does by $2,400(= 65,200- 62,800) E. Hartison Corporation prefers FIFO for financial reporting purpose because it will attract more inventors and customers to its company....
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This note was uploaded on 06/16/2011 for the course BUSI 100 taught by Professor Na during the Spring '10 term at University of North Carolina School of the Arts.
- Spring '10
- Financial Accounting