Hanshaben The following information comes from the 2024 Ocean Petroleum Corporation annual report to shareholders:NOTE 4 INVENTORIESNet 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 materialsMaterials and suppliesFinished goodsLIFO reserveTotal2024$83464793Pre-tax income would have been1,340(60)$ 1,2802023The 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.$82463412957(55)$ 902Required:If Ocean Petroleum had used FIFO to value its entire inventory how would its 2024 pre-tax income be affected?millionif FIFO had been used to value the entire inventory.

LIFO or last-in, first-out is an inventory valuation method, that specifies that the 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.

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.

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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