Homework Answers
Calculation of net income in 2014:
| Particulars | Amount ($) |
| Pretax Income under FIFO for 2014 | 170,000 |
| Less: Final Inventory under FIFO as on 12/31/2014 | 270,000 |
| Add: Final Inventory under LIFO as on 12/31/2014 | 210,000 |
| Add: Final Inventory under FIFO as on 12/31/2013 | 240,000 |
| Less: Final Inventory under LIFO as on 12/31/2013 | 200,000 |
| Pretax Income under LIFO for 2014 | 150,000 |
The answer is $150,000
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2014
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pricing to FIFO. The pretax income data is reported below.
Year
Weighted-Average
FIFO
2013
$370,000
$395,000
2014
390,000
420,000
2015
410,000
460,000
(a)
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years.
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