Brief exercise 8-9 lifo method [lo8-4] aaa hardware uses the lifo method to value its inventory. inventory at the beginning of the year consisted of 16,000 units of the company’s one product. these units cost $10 each. during the year, 66,000 units were purchased at a cost of $13 each and 67,000 units were sold. near the end of the fiscal year, management is considering the purchase of an additional 8,000 units at $13. required: 1. what would be the effect of this purchase on income before income taxes? 2. what would be the effect of this purchase on income before income taxes using fifo method?

answer; work samples;

answer(d) all of the choices are correct;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.