3. Total Wine is a wine wholesaler in Ridgewood, New Jersey. The company uses the LIFO inventory valuation method and applies the lower of cost or market rule whenever necessary to value inventories. The CFO has provided the following data regarding inventories for the year ended December 31, 2019. In addition, Total Wine announced it will reduce the selling price on all 24 cases in ending inventory to $90 a case from the regular selling price of $150. Begin. Inventory 1/1/2019 Purchases 3/25/2019 Purchases 8/19/2019 Goods Available for Sale Cases Sold Ending Inventory 12/31/2019 Cost per Total Cost Case 20 $80.00 84 $100.00 720 $128.00 824 800 24 Cases $1,600 8,400 92,160 $102,160 Required: i. Determine the cost of goods sold for the year ended December 31, 2019. ii. Determine the LIFO Reserve amount Total Wine would disclose in its 2019 financial.

3. Total Wine is a wine wholesaler in Ridgewood, New Jersey. The company uses the LIFO inventory valuation method and applies the lower of cost or market rule whenever necessary to value inventories. The CFO has provided the following data regarding inventories for the year ended December 31, 2019. In addition, Total Wine announced it will reduce the selling price on all 24 cases in ending inventory to $90 a case from the regular selling price of $150. Begin. Inventory 1/1/2019 Purchases 3/25/2019 Purchases 8/19/2019 Goods Available for Sale Cases Sold Ending Inventory 12/31/2019 Cost per Total Cost Case 20 $80.00 84 $100.00 720 $128.00 824 800 24 Cases $1,600 8,400 92,160 $102,160 Required: i. Determine the cost of goods sold for the year ended December 31, 2019. ii. Determine the LIFO Reserve amount Total Wine would disclose in its 2019 financial.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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