Kirk Enterprises is a supplier of film production cameras, over the past few years the cost of cameras has been increasing. They are considering selecting the LIFO or FIFO method of inventory accounting.
Question:
1. They are not sure of the financial impact of either method and have you asked to provide them some advice as to what would the impact of both methods?
2. Specifically, detail the financial impact of LIFO and FIFO methods as the cost of a good is rising by providing an example.
3. Show the financial impact differences on the balance sheet and income statement through your example.
