The following information comes from the 2024 Ocean Petroleum Corporation annual report to shareholders: NOTE 4 INVENTORIES Net carrying values of inventories valued under the LIFO method were approximately $189 million and $209 million on December 31, 2024 and 2023, respectively. Inventories consisted of the following: ($ in millions) Raw materials Materials and supplies Finished goods LIFO reserve Total 2024 $83 464 793 1,340 (60) $ 1,280 Pre-tax income would have been 2023 The LIFO reserve indicates that inventories would have been $60 million and $55 million higher at the end of 2024 and 2023, respectively, if Ocean Petroleum had used FIFO to value its entire inventory. $82 463 412 957 (55) $902 Required: If Ocean Petroleum had used FIFO to value its entire inventory how would its 2024 pre-tax income be affected? million if FIFO had been used to value the entire inventory.
The following information comes from the 2024 Ocean Petroleum Corporation annual report to shareholders: NOTE 4 INVENTORIES Net carrying values of inventories valued under the LIFO method were approximately $189 million and $209 million on December 31, 2024 and 2023, respectively. Inventories consisted of the following: ($ in millions) Raw materials Materials and supplies Finished goods LIFO reserve Total 2024 $83 464 793 1,340 (60) $ 1,280 Pre-tax income would have been 2023 The LIFO reserve indicates that inventories would have been $60 million and $55 million higher at the end of 2024 and 2023, respectively, if Ocean Petroleum had used FIFO to value its entire inventory. $82 463 412 957 (55) $902 Required: If Ocean Petroleum had used FIFO to value its entire inventory how would its 2024 pre-tax income be affected? million if FIFO had been used to value the entire inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information comes from the 2024 Ocean Petroleum Corporation annual report to shareholders:
NOTE 4 INVENTORIES
Net carrying values of inventories valued under the LIFO method were approximately $189 million and $209 million on December 31,
2024 and 2023, respectively. Inventories consisted of the following: ($ in millions)
Raw materials
Materials and supplies
Finished goods
LIFO reserve
Total
2024
$83
464
793
Pre-tax income would have been
1,340
(60)
$ 1,280
2023
The LIFO reserve indicates that inventories would have been $60 million and $55 million higher at the end of 2024 and 2023,
respectively, if Ocean Petroleum had used FIFO to value its entire inventory.
$82
463
412
957
(55)
$ 902
Required:
If Ocean Petroleum had used FIFO to value its entire inventory how would its 2024 pre-tax income be affected?
million
if FIFO had been used to value the entire inventory.
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