Required: 1. Prepare the September 30, 2019, adjusting entry to record the cost of goods sold adjustment. 2. If AnsgarPharm had used FIFO to report its inventories, what would cost of goods sold have been for the year ended September 30, 2019?

Required: 1. Prepare the September 30, 2019, adjusting entry to record the cost of goods sold adjustment. 2. If AnsgarPharm had used FIFO to report its inventories, what would cost of goods sold have been for the year ended September 30, 2019?

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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Question

AnsgarPharm is an American drug wholesale company. The
company uses the LIFO inventory method for external reporting
but maintains its internal records using FIFO. The following
information was included in a recent annual report:
Inventories are comprised of the following ($ in millions):
September 30, 2019 September 30, 2018
$ 13,428
(1,530)
$ 11,898
$ 26,856
(1,702)
$ 25,154
Inventories (under FIFO)
Less: LIFO reserve
Inventories (under LIFO)
The company's income statements reported cost
$149,098 million for the year ended September 30, 2019.
Required:
1. Prepare the September 30, 2019, adjusting entry to record the
cost of goods sold adjustment.
2. If AnsgarPharm had used FIFO to report its inventories, what
would cost of goods sold have been for the year ended
September 30, 2019?
Complete this question by entering your answers i
Required 1 Required 2
Prepare the September 30, 2019, adjusting entry to reco
sold adjustment.
Note: If no entry is required for a transaction/event, sele
required" in the first account field. Enter your answers in
View transaction list
Journal entry worksheet
1
Record the cost of goods sold adjustment for the LIFO reserve.
Note: Enter debits before credits.
goods sold of
Date
September 30,
2019
General Journal
Debit
Credit

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