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book Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall cover

Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Edition 9ISBN: 0073527068
book Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall cover

Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Edition 9ISBN: 0073527068
Exercise 89
Step-by-step solution
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Step 1 of 2

a.

Under LIFO, the cost of the most recent purchases are released to cost of goods sold.  If the purchase cost of inventory items is changing, the selling price of these same items is likely to be changing in the same direction.  Thus, releasing the most recent purchase costs to the Cost of Goods Sold account results in better matching of revenue and expense.


Step 2 of 2

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Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
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