A) LC Company is deciding whether to use the LIFO or FIFO method. Based on thefollowing data, determine inventory cost at the end of 2021 under LIFO and under FIFO.Units Unit Cost500$12.00Purchases60011.0040011.5045012.5025013.00Sold in 20211/1/213/5/217/12/2110/18/2112/22/211,600 |B) After determining inventory cost (per part A above), LC Company will adjust itsinventory to market or net realizable value (NRV). Using the data below for 12/31/21,1- calculate the market value and the NRV of the 2021 ending inventory2- show lower of cost or market and lower of cost or NRV, for LIFO and FIFO, as appropriate.3- If an adjustment is necessary, prepare journal entries to adjust inventory under the direct andindirect methods.Selling Price $16 Selling Cost 3 Normal Profit 4 Replacement Cost $8 Show all calculations forparts A & B.

Name: A) LC Company is deciding whether to use the LIFO or FIFO method. Bas
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Description: A) LC Company is deciding whether to use the LIFO or FIFO method. Based on thefollowing data, determine inventory cost at the end of 2021 under LIFO and under FIFO.Units Unit Cost500$12.00Purchases60011.0040011.5045012.5025013.00Sold in 20211/1/213/

The FIFO method of inventory valuation is a method where the stock that comes first is sold out…

Answered: A) LC Company is deciding whether to…

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A) LC Company is deciding whether to use the LIFO or FIFO method. Based on the following data, determine inventory cost at the end of 2021 under LIFO and under FIFO.

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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