Question: Eagle Resources, which uses the FIFO method, has these account balances at December 31, 2008, prior to releasing the financial statements for the year: Eagle

Eagle Resources, which uses the FIFO method, has these account balances at December 31, 2008, prior to releasing the financial statements for the year:

Inventory Beg. bal., 12,000 End bal. 14,000 Cost of Goods Sold Sales

Eagle has determined that the replacement cost (current market value) of the December 31,2008 , ending inventory is $\$ 13,000$.

Requirement

Prepare Eagle Resources' balance sheet at December 31, 2008, to show how Eagle would apply the lower-of-cost-or-market rule to inventories. Include a complete heading for the statement.

Inventory Beg. bal., 12,000 End bal. 14,000 Cost of Goods Sold Sales Revenue Bal. 72,000 Bal. 118,000

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