Ending inventory calculation. Please see photo for question. Winnebago reported ending inventory August 29 2017 of 49,030,000 under LIFO method. In financial stmts assume Winnebago reported a LIFO reserve of 39,791,000 at August 29. What would ending inventory have been if FIFO?
Ending inventory calculation. Please see photo for question. Winnebago reported ending inventory August 29 2017 of 49,030,000 under LIFO method. In financial stmts assume Winnebago reported a LIFO reserve of 39,791,000 at August 29. What would ending inventory have been if FIFO?
Inventory: It refers to the items held by an organization which were in various forms like raw material, work-in process, and finished goods. The inventory is generally held for resale or to use in the production process.
First-in first out method (FIFO): The FIFO method under the perpetual inventory system values the cost of units sold at the rate of units which were first purchased in the inventory. Thus, the cost of goods sold is valued at cost of earlier purchased goods and the ending inventory is valued at the cost of recently purchased goods.
Last in first out method (LIFO): The LIFO method under the perpetual inventory system values the cost of units sold at the rate of units which were recently purchased. Thus, the ending inventory is valued at the cost of earlier purchased goods.
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