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2 Heller Bottling Company began business in 2011, and ceased operations in 2015. Inventory units purchased and sold for the five years follow: 2011 2012 2013 2014 2015 Units Purchased 10,000 12,000 5,000 10,000 2,000 Cost per Unit 12 16 18 21 23 Units Sold 5,000 16,000 2,000 10,000 6,000 a. Compute cost of goods sold for each of the five years if the company uses the following: a. LIFO b. FIFO c. Average cost (round cost/unit to two decimals, and COGS to the nearest dollar) b. Does the choice of a cost flow assumption affect total net income over the life of a business? Explain. c. If the choice of a cost flow assumption does not affect net income over the life of a business, how does the choice of LIFO give rise to a tax benefit?

Heller Bottling Company began business in 2011, and ceased operations in 2015 . Inventory units purchased and sold for the five years follow: a. Compute cost of goods sold for each of the five years if the company uses the following: a. LIFO b. FIFO c. Average cost (round cost/unit to two decimals, and COGS to the nearest dollar) b. Does the choice of a cost flow assumption affect total net income over the life of a business? Explain. c. If the choice of a cost flow assumption does not affect net income over the life of a business, how does the choice of LIFO give rise to a tax benefit? 2 Heller Bottling Company began business in 2011, and ceased operations in 2015. Inventory units purchased and sold for the five years follow: a. Compute cost of goods sold for each of the five years if the company uses the following: a. LIFO b. FIFO c. Average cost (round cost/unit to two decimals, and COGS to the nearest dollar) b. Does the choice of a cost flow assumption affect total net income over the life of a business? Explain. c. If the choice of a cost flow assumption does not affect net income over the life of a business, how does the choice of LIFO give rise to a tax benefit

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