Exhibit7.5 Sullivan Produce Co. switched from FIFO to LIFO on January1,2018, for external reporting and income tax purposes, while retaining FIFO for internal reports. On that date, the FIFO inventory equaled $360,000. The ensuing three-year period resulted in the following: December31,2018 Year-End Costs $438,000 Cost Index 1.05 December 31,2019 Year-End Costs $460,000 Cost Index 1.15 December 31, 2020 Year-End Costs $520,000 Cost Index 1.25 Refer to Exhibit 7-5, The ending inventory at December 31,2020, using the dollar-value LIFO method would be a. $422,000 b. $402,000 c $426,000 d. $420,400 Refer to Exhibit7-5, the ending inventory at December 31,2019, at base-year price is: a.$400,000 b. $402,000 c.$406,000 d.$424,000
Exhibit7.5
Sullivan Produce Co. switched from FIFO to LIFO on January1,2018, for external reporting and income tax purposes, while retaining FIFO for internal reports. On that date, the FIFO inventory equaled $360,000. The ensuing three-year period resulted in the following:
December31,2018 Year-End Costs $438,000 Cost Index 1.05
December 31,2019 Year-End Costs $460,000 Cost Index 1.15
December 31, 2020 Year-End Costs $520,000 Cost Index 1.25
Refer to Exhibit 7-5, The ending inventory at December 31,2020, using the dollar-value LIFO method would be
a. $422,000
b. $402,000
c $426,000
d. $420,400
Refer to Exhibit7-5, the ending inventory at December 31,2019, at base-year price is:
a.$400,000
b. $402,000
c.$406,000
d.$424,000
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
