Question

Refer to the information in Problem 40 concerning Sedan Corporation’s inventory for the years ended March 31, 2013 and 2012. The notes to Sedan’s financial statements for the year ended March 31, 2013, state that some of Sedan’s inventory is valued using the last-in, first-out (LIFO) method. Specifically, Sedan reported that for the year ended March 31, 2013, ¥283,735 million of inventory was valued using LIFO,compared to ¥357,055 for the year ended March 31, 2012.
Problem 40


The LIFO inventory amounts exceeded their FIFO amounts by ¥13,780 million for the year ended March 31, 2013, and by ¥30,360 million for the year ended March 31, 2012.
a. What would have been the carrying value of Sedan’s inventory at March 31, 2013 and
2012, had the firm used FIFO to value all inventories?
b. What would have been Sedan’s cost of products sold for the year ended March 31,
2013, if it had used FIFO for all of its inventories? Note: Convention assigns any LIFO reserve entirely to Finished GoodsInventory.


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  • CreatedMarch 04, 2014
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