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Unformatted text preview: adjusting journal entries at year end under both the FIFO and Weighted Average methods. FIFO No entry (Ending Inventory value < Net Realizable Value) Weighted Average Cost of Sales 440 Inventory 440 c) After taking into account the LCNRV rule in part b), what is the change in profit of using the FIFO method as opposed to the Weighted Average method? Assume a tax rate of 30%. Difference in Profit Before 600 Tax Tax Rate 30% Difference in Profit 420...
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This note was uploaded on 01/18/2012 for the course AFM 101 taught by Professor Kennedy during the Fall '08 term at Waterloo.
- Fall '08