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Unformatted text preview: and the cost of goods sold for the Spartan mugs during the year under each of the following cost flow assumptions (show your work). 1. Last-in, first-out 2. First-in, first-out 3. Weighted Average cost (round to the nearest dollar, except unit cost) B. Which of the three inventory pricing methods provides the most realistic balance sheet valuation of inventory in light of the current replacement cost of the Spartan mugs? Explain. C. Assuming a 35% tax rate what method would Green & White choose if they wanted to minimize taxes paid? Can Green & White choose one inventory method for tax purposes to minimize taxes and a different method for financial reporting purposes to maximize income?...
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- Spring '10