Eastshore Corporation sells three main products regularly. The products form one pool for inventor/ purposes, The company
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Question:
Eastshore Corporation sells three main products regularly. The products form one pool for inventor/ purposes, The company used FIFO throughout 2007 for all purposes. After 2007, FIFO continued to be used for internal management and accounting purposes; however, at the beginning of 2008, dollar-value LIFO was adopted For income tax and external reporting purposes. The following data (for the three products combined) were taken from the records for the three years following the adoption of LIFO:
FIFO Basis Accounts | |||
2007 | Units | Cost | Total |
Ending inventory | 2,000 | $3.00 | $6,000 |
2008: | | | |
Purchases | 7,000 | $3.30 | $23,100 |
Sales | 6,000 | | |
Ending inventory | 3,000 | S3.30 | $ 9,900 |
2009: | | | |
Purchases | 10,000 | $3.60 | $36,000 |
Sales | 7,000 | | |
Ending inventory | 6,000 | $3.60 | $21,600 |
2010 | | | |
Purchases | 5,000 | $3.75 | $18,750 |
Sales | 7,000 | | |
Ending inventory | 4,000 | $3.75 | $15,000 |
Required:
Convert the ending inventory at FIFO to a dollar-value LIFO basis for 2008, 2009, and 2010.
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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