AEP Industries Inc. is a leading manufacturer of plastic packing films. The company uses the LIFO inventory

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AEP Industries Inc. is a leading manufacturer of plastic packing films. The company uses the LIFO inventory method for external reporting but maintains its internal records using FIFO. The following disclosure note was included in a recent quarterly report:
4. Inventories (in part)
Inventories are comprised of the following ($ in thousands):
AEP Industries Inc. is a leading manufacturer of plastic packing

The company's income statements reported cost of goods sold of $209,826 thousand for the quarter ended January 31, 2016.
Required:
1. Assume that AEP adjusts the LIFO reserve at the end of its quarter. Prepare the January 31, 2016, adjusting entry to record the cost of goods sold adjustment.
2. If AEP had used FIFO to value its inventories, what would cost of goods sold have been for the quarter ended January 31, 2016?

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Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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