Interpreting inventory disclosures. Refer to the information in Problem 40 concerning Toyota Corporation’s inventory for the years ended March 31, 2008 and 2007. The notes to Toyota’s financial statements for the year ended March 31, 2008, state that some of Toyota’s inventory is valued using the last-in. last-out (LIFO) method. Specifically, Toyota reported that for the year ended March 31, 2008, Ұ283,735 million of inventory was valued using LIFO, compared to Ұ357,055 for the year ended March 31, 2007. The LIFO inventory amounts exceeded their FIFO amounts by Ұl3,780 million for the year ended March 31, 2008, and by Ұ30,360 million for the year ended March 31, 2007.
a. What would have been the carrying value of Toyota’s inventory at March 31, 2008 and 2007, had the firm used FIFO to value all inventories?
b. What would have been Toyota’s Cost of Products Sold for the year ended March 31, 2008, if it had used FIFO for all of its inventories? Note: Convention assigns any LIFO reserve entirety to Finished Goods Inventory.