Crystal Glass, Inc.
Statement of Income
For the year ended October 31, 2009
You are given the following additional information:
beginning inventory 250,000 units
production 2009 500,000 units
sales 2009 600,000 units
A. What type of costing method is used by Crystal Glass?
B. Does the method comply with GAAP? If not, what costing method should be used?
What would net income be?