(Solved): Pool Corporation, Incorporated, reported in Its recent annual report that "In 2010 , our industry e ...

Pool Corporation, Incorporated, reported in Its recent annual report that "In 2010 , our industry experlenced some price deflation.... In 2011, our Industry experlenced more normalized price inflation of approximately 2.6 percent overall despite price deflation for certain chemical products." This suggests that In some years Pool's overall Inventory costs rise, and in some years they fall. Furthermore, in many years, the costs of some Irventory items rise while others fall. Assume that Pool has only two product items In Its Inventory this year. Purchase and sales data are presented below. Required: 1. Compute cost of goods sold for each of the two Items separately using the FIFO and LIFO Inventory costing methods. 2. Between FIFO and LIFO, which method is preferable in terms of (a) net Income and (b) income taxes pald (cash flow)? Complete this question by entering your answers in the tabs below. Compute cost of goods sold for each of the two items separately using the FIFO and LIFO inventory costing methods. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow)? \begin{tabular}{|l|l|l|} \hline & Item $\mathbf{A}$ & Item B \\ \hline (a) Net income & & \\ \hline (b) Income taxes paid & & \\ \hline \end{tabular}