Jan. 15 800 units at $400 $ 320,000
Mar. 20 400 units at $408 163,200
June 15 1,600 units at $416 665,600
Sept. 18 1,200 units at $412 494,400
Dec. 9 600 units at $420 252,000
Total 4,600 units $1,895,200
At the end of the year, a physical inventory disclosed 1,000 units still on hand. Minnows’s managers know they have a choice of accounting methods, but they are unsure how those methods will affect net income. They have heard of the FIFO and LIFO inventory methods and the straight-line and double-declining-balance depreciation methods.
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