Winnebago Industries, Inc. is a leading manufacturer of motor homes. Suppose Winnebago reported ending inventory at August 29 2025, of $45,251,000 under the LIFO inventory method. In the notes to its financial statements, assume Winnebago reported a LIF reserve of $29,448,000 at August 29, 2025. What would Winnebago Industries' ending inventory have been if it had used FIFO? Ending inventory assuming FIFO $
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- Caterpillar Inc (CAT) has the following excerpts from their financial statements December 31, 2021 December 31, 2020 Inventory (in $ Millions) 14,038 11,402 Net Income(in $ Millions) 6,489 2,998 Inventories are principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis. If the FIFO (first-in, first-out) method had been in use, inventories would have been $3,258 million and $2,921 million higher than reported at December 31, 2021 and 2020, respectively. Assume corporate tax rate of 21%. If CAT had used FIFO method instead of LIFO method What inventory (in $ Millions) would CAT report for 2021? What net income (profit) would CAT report in 2021? What is the cumulative amount of income tax savings that CAT generated through end of 2021 by using LIFO instead of FIFO? What…You're thinking of buying three separate bonds. Each bond has a face value of $1,000 and will maturity after ten years. Since both of the bonds have the same amount of risk, their yield to maturity is the same. Bond A pays an annual coupon of 8%, Bond B pays a 10% annual coupon, and Bond C pays a 12% annual coupon. Bond B is sold at par value. Which of the above assertions is more accurate if interest rates are supposed to stay at their present pace for the next ten years?a. Bond A is sold at a discount (less than par) and is projected to rise in value over the next year.b. During the next year, Bond A's price is expected to fall, Bond B's price is expected to remain unchanged, and Bond C's price is expected to rise.c. Since all of the bonds have the same yield to maturity, they should all have the same amount, and because interest rates are unlikely to adjust, their values should all stay the same once the bonds mature.d. Bond C is sold at a premium (it is worth more than par) and is…Carswell Electronics adopted the dollar-value LIFO method on January 1, 2018, when the inventory value ofits one inventory pool was $720,000. The company decided to use an external index, the Consumer Price Index(CPI), to adjust for changes in the cost level. On January 1, 2018, the CPI was 240. On December 31, 2018, inventory valued at year-end cost was $880,000 and the CPI was 264.Required:Calculate the inventory value at the end of 2018 using the dollar-value LIFO method.
- This problem consists of TWO parts Part One: Galaxy Corporation has a beginning inventory in 2023 of $1,400,000 and an ending inventory of $1,694,000. The price level has increased from 100 at the beginning of 2023 to 110 at the end of 2023. Calculate the ending inventory value using the dollar value LIFO method. Part Two: At the end of 2024, Galaxy's inventory is $1,886,000 in terms of a price level of 115 which exists at the end of 2024. Calculate the inventory value at the end of 2024 using the dollar value LIFO method. Problem Five (4 points) Maxwell Corporation provides you with the following inventory related to its inventory at December 31, 2023: Inventory Original Cost Replacement Net Realizable Net Realizable Appropriate Item per Unit Cost Value Value Less Inventory Value A $.65 $.45 B.45.40 Normal Profit at 12/31/23 C.70.75 D.75.65 E.90.85 The normal selling price is $1.00 per unit for All items. Disposal costs amount to 10% of the selling price and a normal profit is 30% of…Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) Beginning inventory Ending inventory Cost of goods sold Sales revenue (a) 2020 Inventory turnover $1,700 2,200 15,015 38,600 2021 $2,200 $2,500 2,500 2022 45,100 2020 17,860 17,595 2,600 Calculate the inventory turnover for 2020, 2021, and 2022. (Round inventory turnover to 1 decimal place, e.g. 5.1.) 45,000 times 2021 times 2022 timesIn 2021, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2020 of $123,000 would have been $137,000 if FIFO had been used. Inventory at the end of 2021 is $150,000 using the new FIFO method but would have been $145,000 if the company had continued to use LIFO. What is the effect of the change on 2021 cost of goods sold?
- PROBLEM: Based on its general ledger/records, Alfonso Co. reported inventory of P356,400 at the end of 2021. The following items were included in the inventory total: P31,500 worth of goods shipped by "Free Along Side" on December 31, 2021, and received by Alfonso Co. on January 5, 2022. а. Goods worth P12,400 ordered from a supplier on December 26, 2021, were shipped on December 28 "Cost, Insurance, and Freight" but had not arrived by December 31. b. P14,800 worth of goods ordered on December 25, 2021, were shipped to Alfonso Co. FOB "Ex-ship" on December 28, 2021, and received on January 2, С. 2022. d. A client ordered P21,600 worth of goods on December 27, 2021, which were dispatched FOB Seller on December 29, 2021, and received by the customer on January 5, 2022. On December 29, 2021, goods worth P12,500 were shipped FOB Buyer to a client. The goods are still on their way, and the customer anticipates receiving them on January 6, 2022. е. What is the correct inventory amount to…As a result of a thorough physical inventory, Ulalam Company determined that it had inventory worth $180,000 at December 31, 2020. This count did not take into consideration the following facts: Miya Consignment store currently has goods worth P35,000 on its sales floor that belong to Ulalam but are being sold on consignment by Miya. The selling price of these goods is $50,000. Ulalam purchased $13,000 of goods that were shipped on December 27, FOB destination, that will be received by Ulalam on January 3. How much is the correct amount of inventory to be reported in Ulalam Company’s statement of financial position?Swifty Corporation began operations on December 1, 2022. The only inventory transaction in 2022 was the purchase of inventory on December 10, 2022, at a cost of $23 per unit. None of this inventory was sold in 2022. Relevant information for fiscal 2023 is as follows: Ending inventory units: Dec. 31, 2022 Dec. 31, 2023, by purchase date Dec. 2, 2023 July 20, 2023 Mar. 15. July Sept. Dec. 2 During 2023, the following purchases and sales were made: Purchases 20. (a1) 4 320 units at $26 320 units at $27 240 units at $29 120 units at $32 120 31 Ending inventory $ 120 Nov. 151 Dec. Sales Apr. Aug. 20 310 10 18 The company uses the periodic inventory method. 12 200 180 279 Determine ending inventory under specific identification.
- Kingbird Company has used the dollar-value LIFO method for inventory cost determination for many years. The following data were extracted from Kingbird's records. Price Ending Inventory Date Index at Base Prices Ending Inventory at Dollar-Value LIFO December 31, 2025 105 $92,700 $86,600 December 31, 2026 ? 97,700 92,150 Calculate the index used for 2026 that yielded the above results. Index used for 2026Sagars Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $210,000. Inventory data are as follows: Year 2025 2026 2027 Date Required: Compute the inventory at December 31, 2025, 2026, and 2027, using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. 12/31/2024 12/31/2025 12/31/2026 Ending Inventory at Ending Inventory at Year-End Costs Base Year Costs $ 252,000 333,500 336,000 12/31/2027 $ 240,000 290,000 280,000 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Year-End Cost Index = = = = Ending Inventory at Base Year Cost Base Base 2025 Base 2025 2026 Base 2025 2026 2027 Inventory Layers Converted to Cost Ending Inventory at Base Year Cost Year-End Cost Index = Inventory Layers Converted to Cost Inventory DVL Cost $ $ $ $ 0 0 0 0