What would be the effect of this purchase on income


AAA Hardware uses the LIFO method to value its inventory. Inventory at the beginning of the year consisted of 11,400 units of the company's one product. These units cost $20 each. During the year, 60,300 units were purchased at a cost of $28 each and 64,700 units were sold. Near the end of the fiscal year, management is considering the purchase of an additional 7,000 units at $28.

What would be the effect of this purchase on income before income taxes? (Leave no cells blank - be certain to select "No effect" wherever required. Omit the "tiny_mce_markerquot; sign in your response.)

 

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Accounting Basics: What would be the effect of this purchase on income
Reference No:- TGS072750

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