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The following information is taken from Satin fina...

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The following information is taken from Satin financial statements (amounts in thousands) Inventory Footnote: If the first-in, first-out method of accounting for inventory had been used, inventory would have been approximately $26.9 million and $25.1 million higher than reported at 12/31/2010 and 12/31/2009, respectively. (ATTACHED DOC) Required: A) Calculate what inventory would have been at 12/31/2010 and 12/31/2009 had the FIFO inventory method been used. B) What would cost of goods sold for the year ended 12/31/2010 have been if the FIFO inventory method been used? Show your computations. C) Compute the inventory turnover ratio for 2010 using a LIFO cost-flow assumption. D) Compute the inventory turnover ratio for 2010 using a FIFO cost-flow assumption. E) Explain why the costs assigned to inventory under LIFO at the end of 2009 and 2010 are different than they are under FIFO.

 

Paper#8180 | Written in 18-Jul-2015

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