URGENT HELP , will thjmbs up

Recording and Reporting a LIFO Reserve

At the end of the annual accounting period, the inventory records of Boton Company show the following. The company uses FIFO for internal purposes and LIFO for income tax and external reporting purposes.

Ending inventory at FIFO

Ending inventory at LIFO

Prior Year Current Year

$160,000

$288,000

64,000

112,000

a. Assume that the inventory difference is recognized in the accounts, and the balance in the allowance account was zero at the beginning of the prior year. Provide the necessary journal entry at the end of the prior year and current year to adjust the LIFO reserve.

b. Show how inventory should be shown on its comparative balance sheets for the prior and current years.

Balance Sheet, Dec 31 Prior Year Current Year

Current Assets

Inventory

c. If the company reported cost of goods sold of $768,000 in the current year using LIFO, what would cost of goods sold be using FIFO?

Recording and Reporting a LIFO Reserve purposis. entry at the end of the peior year and current year to adjust the LFO reserve. b. Show how irventory should be thown en is comparative balance sheets for the prior and current years. c If the company reported cost of goods sold of $768,000 in the current year using LiFO, what wauld cost of goods sold be using faro