Acct Hw 8 - 6-7A: d) The amount of income tax is less for...

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Black 1 6-1A: a) LIFO d) FIFO b) FIFO e) average c) FIFO 6-2A: a) 1,200 b) 1,500 c) 1,600 6-3A: a) 39,000 b) 39,250 c) 39,058 6-4A: a) FIFO – 4190, LIFO – 4090, AVG – 3650. b) $100 c) Cash flow is independent of the inventory cost flow method used to calculate the COGS.
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Unformatted text preview: 6-7A: d) The amount of income tax is less for the LIFO method because the COGS is less. e) The income tax expense is greater with the FIFO method, therefore the cash flow recognized is going to be greater than when the LIFO method is used....
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This homework help was uploaded on 04/09/2008 for the course ACCT 221 taught by Professor Catherinewest during the Fall '06 term at UMass (Amherst).

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