Following data was collected from 10K filed with the SEC.
	2021	2020	2019
sales	$ 50,971.00	$ 41,748.00	$ 53,800.00
LIFO COGS	$ 35,513.00	$ 29,082.00	$ 36,630.00
LIFO Net Income	$ 6,493.00	$ 3,003.00	$ 6,094.00
LIFO Ending inventory - balance sheet	$ 14,038.00	$ 11,402.00	$ 11,266.00
LIFO reserve from Note 1	$ 2,599.00	$ 2,132.00	$ 2,086.00
Total Assets	$ 82,793.00	$ 78,324.00	$ 78,453.00

Calculations to convert LIFO to FIFO:
	2,021	2,020	2,019
FIFO Inventory = LIFO Inventory + LIFO reserve
FIFO assets= LIFO assets + LIFO Reserve
Increase in LIFO Reserveduring the year			N/A
FIFO COGS = LIFO COGS - Increase in LIFO Reserve Remember FIFO cogs expense < LIFO COGS expense			N/A
After tax effect of LIFO = (1-21%) X Increase in LIFO Reserve			N/A
FIFO Net Income = LIFO Net income + after-tax effect of lifo. Remember FIFO net income > LiFO net income			N/A

Complete table calculation and answer the below questions.

1. By how much would net income have increased if the FIFO costing inventory method had been used instead of LIFO?

2. By how much would have ending inventory increased in 2021 if the FIFO costing method had been used instead of LIFO?

Answer rating: 100% (QA)

To convert LIFO to FIFO we need to use the LIFO reserve which is the difference between the value of ... View the full answer