1. U.S. public companies using LIFO also report the amount that inventory would increase (or occasionally decrease) if the company had instead used FIFO. HARLEY-DAVIDSON, INC EXHIBIT 7.9 Notes to Consolidated Financial Statements 2. ADDITIONAL BALANCE SHEET AND CASH FLOW INFORMATION Financial Statement (in thousands) Effects of Inventory Costing Methods December 31, 2006 2005 REAL WORLD EXCERPT Harley-Davidson, Inc. Inventories ANNUAL REPORT Inventory at FIFO Excess of FIFO over LIFO cost 316.524 244,708 28,726 23,290 LIFO Reserve Inventory reported Inventory at LIFO $287,798 $221.418 on the balance sheet If Harley-Davidson reported COGS of $500,000 thousand. How much COGS would be if it used FIFO?

1. U.S. public companies using LIFO also report the amount that inventory would increase (or occasionally decrease) if the company had instead used FIFO. HARLEY-DAVIDSON, INC EXHIBIT 7.9 Notes to Consolidated Financial Statements 2. ADDITIONAL BALANCE SHEET AND CASH FLOW INFORMATION Financial Statement (in thousands) Effects of Inventory Costing Methods December 31, 2006 2005 REAL WORLD EXCERPT Harley-Davidson, Inc. Inventories ANNUAL REPORT Inventory at FIFO Excess of FIFO over LIFO cost 316.524 244,708 28,726 23,290 LIFO Reserve Inventory reported Inventory at LIFO $287,798 $221.418 on the balance sheet If Harley-Davidson reported COGS of $500,000 thousand. How much COGS would be if it used FIFO?

Name: 1. U.S. public companies using LIFO also report the amount that invent
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: 1. U.S. public companies using LIFO also report the amount that inventory wouldincrease (oroccasionally decrease) if the company had instead used FIFO. See file please. 1. U.S. public companies using LIFO also report the amount that inventory would i

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Quantity discounts offered by suppliers of large shipments of inventory are not always recorded…

A: Quantity discounts are price reductions that are offered to customers who purchase larger quantities…

Q: reason for the FASB changing the accounting method for reporting lower-of-cost-or-market

A: FASB introduced an update in inventory measurement in July 2015. As per this, the inventory should…

Q: What is the main difference between a perpetual inventory system and a periodic inventory system?…

A: Inventory can be valued under two methods. 1. perpetual inventory method 2. Periodic inventory…

Q: Q2. Which of the following inventory valuation methods typically results in the highest reported…

A: B) Last - In, First - Out (LIFO)Explanation:LIFO (Last-in, First-out) is typically used during…

Q: The inventory valuation method that has the advantages of assigning an amount to inventory on the…

A: Inventory means the stock of goods in hand . Goods means the thing in which the business deals and…

Q: When comparing a US company that uses the last in, fi rst out (LIFO) method of inventory with…

A: There are two standards that guide for preparation of Financial Statements one is as per US GAAP and…

Q: In what ways would a reduction in inventory help the company

A: Inventory refers to all the items, goods, merchandise, and materials held by a business for selling…

Q: a) Compare the periodic versus the perpetual system as a control device. b) What sort of…

A: The periodic and perpetual inventory Systems are two systems used to track the quantity of goods…

Q: A company has the following information in its records. Certain data have been intentionally omitted…

A: In this question, we will find out the beginning inventory, ending inventory, Cost of goods…

Q: For companies using LIFO inventory, the lower-of-cost-or-market rule tor inventory tequires a kim to…

A: The lower-of-cost-or-market (LCM) rule for inventory, especially for companies using LIFO (Last In,…

Q: The Habib Company did not include in their inventory count inventory that was sold to a customer…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Lower of cost or market is an attribute used for the: a. initial measurement of accounts…

A: Lets understand the basicsas per IAS 2 "Inventory" inventory should initially be recorded at cost.…

Q: Which inventory system would allow a business to determine inventory shrinkage (breakage, theft,…

A: Inventory Systems: Inventory systems are classified as periodic or perpetual based on how invetory…

Q: What does a very high inventory turnover ratio signify? Please provide your own example to explain…

A: Inventory turnover ratio is one of the efficiency ratio, which says and calculates how many times…

Q: ic inventory system wants to remove beginning estimated returns inventory, which of the following…

A: The right answer is option a.Estimated Returns Inventory

Q: Lunar Company uses a perpetual inventory system. The company's accounting records provided the…

A: Inventory Valuation -Inventory valuation is performed by every organization. It is categorized into…

Q: Is it necessary to do a physical count of inventory if the company is using a perpetual system? Why…

A: The perpetual inventory system is one of the approaches or systems used in inventory management…

Q: 3. What is the purpose of the current ratio? Assume that Island Solutions want to compute its…

A: The current ratio is a financial metric that measures a company's ability to cover its short-term…

Q: following is accounted for prospectively? Change in reporting entity. Change in…

A: A change in an estimate is accounted for prospectively.

Q: not use ai please

A: A. Goods sent to another company to be sold on consignment (company is the principal): These goods…

Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

1. U.S. public companies using LIFO also report the amount that inventory would
increase (or
occasionally decrease) if the company had instead used FIFO.

See file please.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

H7. For the same transactions, why does the weighted-average cost method provide different value for ending inventory and COGS depending on whether the periodic or perpetual inventory system is used? Select one: a. Perpetual inventory calculates and assigns costs as items are sold, while periodic inventory calculates and assigns costs at the end of the period. b. Perpetual inventory calculates and assigns costs at the end of the period, while periodic inventory calculates and assigns costs as items are sold. c. Perpetual inventory counts all the purchases for the month first before calculating the average cost, while periodic calculates the average cost after every transaction. d. Perpetual inventory and periodic inventory will not provide different values using Explain also wrong options and explain with details
Discuss the primary difference between U.S. GAAP and IFRS with respect to determining the cost of inventory.
One of the significant remaining differences between U.S. GAAP and IFRS is the treatment of inventory. Which of the following accurately states the reason for this significant difference? O IFRS does not allow LIFO. O IFRS does allow Dollar Value LIFO. O IFRS does allow Weighted Average. O IFRS does not allow FIFO.
What is the ending inventory value?
FIFO and weighted average. But what if a company wants to use LIFO to report its inventory because of the significant tax benefit? How could dollar-value LIFO help them use FIFO for managerial purposes but LIFO for financial statement reporting?
Hoosier Inc. uses the LIFO inventory cost method to prepare the company's tax return. Which method must the company use to account for inventory on their financial statements? Assume US GAAP and rising costs. O FIFO LIFO O Weighted average or LIFO Specific Identification O LIFO or FIFO, but not weighted average
Which one of the following statements is true? a. Income manipulation is difficult under LIFO.b. Accounting principles do not require that the inventory cost flow approximate the physical flow of goods.c. Companies may use LIFO for tax purposes and FIFO in the financial statements.d. In periods of declining prices, LIFO will result in the payment of less income taxes.