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Nicky Bisco Product adopted the dollar-value LIFO method using 2018

Nicky Bisco Product adopted the dollar-value LIFO method using 2018 as the base year for financial reporting

Question:

Nicky Bisco Product adopted the dollar-value LIFO method using 2018 as the base year for financial reporting purposes. It uses FIFO for its internal books. information related to Bisco's inventory follows:

Ending Inventory at End of-Year Prices per Cumulative Price Year Internal Books Index 2018 $495,000 100 2019 588.000 110 2020 612,000 112

Required

a. Compute Bisco's ending inventory under the dollar-value LIFO method for the years 2018 through 2020.

b. Prepare the journal entries for 2019 and 2020 to adjust inventory to the dollar-value LIFO basis.

c . Determine the ending balance of the LIFO reserve for 2019 and 2020

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...

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Ending Inventory at End of-Year Prices per Cumulative Price Year Internal Books Index 2018 $495,000 100 2019 588.000 110 2020 612,000 112

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Aun Ali

I am an Associate Member of Cost and Management Accountants of Pakistan with vast experience in the field of accounting and finance, including more than 17 years of teaching experience at university level. I have been teaching at both undergraduate and post graduate levels. My area of specialization is cost and management accounting but I have taught various subjects related to accounting and finance.

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Intermediate Accounting

ISBN: 978-0134730370

2nd edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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Question Posted: Jun 27, 2019 07:29 AM

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Nicky Bisco Product adopted the dollar-value LIFO method using 2018 as the base year for financial reporting

Question:

Ending Inventory at End of-Year Prices per Cumulative Price Year Internal Books Index 2018 $495,000 100 2019 588.000 110 2020 612,000 112

Step by Step Answer:

a Year Ending Inventory at End of Year Prices per Internal Books Cumulative Price Index Ending I...View the full answer

Intermediate Accounting

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