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Homework Answers
Solution
Please find below table useful to compute desired results: -
| Particulars | FIFO ($) | LIFO ($) |
| Beginning Inventory | 80,00,000 | 70,00,000 |
| Ending Inventory | 70,00,000 | 55,00,000 |
| Tax rate assumed | 21% | 21% |
| Decrease in inventory (Increase in COGS) | 10,00,000 | 15,00,000 |
| COGS Benefit | 210,000 (10,00,000x21%) | 315,000 (15,00,000x21%) |
| Excess Tax Paid | 105,000 |
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