Question: The Cardoza Products Companys inventory record appears below. The company uses a LIFO cost flow assumption. It reported ending inventories as follows for its first

The Cardoza Products Company€™s inventory record appears below.

The company uses a LIFO cost flow assumption. It reported ending inventories as follows for its first three years of operations:
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,000
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,600
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,600

Determine if the Cardoza Products Company has reported its inventory correctly. Assuming that 2008 accounts are not yet closed, make any necessary correctingentries.

Purchases Sales Quantity Unit Cost Quantity 2006. 2007... 2008 9,000 9,500 7.200 $5.60 5.75 5.82 6,500 0,000 6,000

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