QUE 1

LIFO
beginning inventory purchases ending inventory
units '000 price value units '000 price value units '000 price
quarter 1 15 900 13500 10 1400 14000 15 900
quarter 2 15 900 13500 10 1500 15000 15 900
quarter 3 15 900 13500 10 1600 16000 15 900
quarter 4 15 900 13500 10 1700 17000 15 900
year

QUE 2
LIFO
beginning inventory purchases ending inventory
units '000 price value units '000 price value units '000 price
quarter 1 15 900 13500 10 1400 14000 15 900
15-900
quarter 2 15 900 13500 10 1500 15000 20 5-1500

15-900
quarter 3 20 5-1500 21000 10 1600 16000 10 10-900
5-1700
quarter 4 10 10-900 9000 10 1700 17000 15 10-900
year

QUE 3
FIFO
beginning inventory purchases ending inventory
units '000 price value units '000 price value units '000 price
5-900
10-1400
quarter 1 15 900 13500 10 1400 14000 15
5-900
10-1400 5-1400
quarter 2 15 18500 10 1500 15000 15 10-1500
5-1400 5-1500
quarter 3 15 10-1500 22000 10 1600 16000 15 10-1600
5-1500 5-1600
quarter 4 15 10-1600 23500 10 1700 17000 15 10-1700
year
 Income statement
nding inventory COGS sales 80000
value units '000 price value COGS 62000
13500 10 1400 14000 Gross margin 18000
13500 10 1500 15000 Selling and admin exp. 10000
13500 10 1600 16000 Income before tax 8000
13500 10 1700 17000 Income taxes (35%) 2800
62000 Net income 5200

Income statement
nding inventory COGS sales 80000
value units '000 price value COGS 74000
13500 10 1400 14000 Gross margin 6000

21000 5 1500 15000 Selling and admin exp. 10000

10-1600
5-1500
9000 20 5-900 28000 Income before tax -4000

17500 5 1700 17000 Income taxes (35%) -1400

40 74000 Net income -2600

Income statement
nding inventory COGS sales 80000
value units '000 price value COGS 55500

18500 10 900 14000 Gross margin 24500

5-900
22000 10 5-1400 11500 Selling and admin exp. 10000
5-1400
23500 10 5-1500 14500 Income before tax 14500
5-1500
25000 10 5-1600 15500 Income taxes (35%) 5075
55500 Net income 9425