Chapter 20, Problem 20.1BYP

(1)

To determine

Inventory costing method:

The costing method that is used to record the cost of goods sold, and ending inventory in the financial statements is referred to as inventory costing method.

Last-in-First-Out:

In Last-in-First-Out (LIFO) method, the costs of the last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items.

To Determine: LIFO inventory value of Incorporation W as on December 31, 2017 and 2018.

(2)

To determine

To Describe: The change that should have been reported in 2016 financial statements of Incorporation W.