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1.Using footnote information, what costing method does HOG use for inventory? What is the inventory balance at year end under FIFO? The balance under LIFO
1.Using footnote information, what costing method does HOG use for inventory? What is the inventory balance at year end under FIFO? The balance under LIFO (i.e. current balance sheet value)? Assuming a 25% tax rate, what, if any amount, has HOG saved on taxes through their inventory choice through the most recent year end? What would COGS be in the most recent year if HOG had used only FIFO for their inventory method?
Inventories, net consisted of the following as of December 31, (in thousands): 2020 2019 Raw materials and work in process FA 211,979 $ 235,433 Motorcycle finished goods 281,132 280,306 Parts & Accessories and General Merchandise 84,469 144,258 Inventory at lower of FIFO cost or net realizable value 659,997 577,580 (54,083) Excess of FIFO over LIFO cost (56,426) $ 523,497 $ 603,571 Inventory obsolescence reserves deducted from FIFO cost were $72.0 million and $49.3 million as of December 31, 2020 and 2019, respectively. Property, plant and equipment, net consisted of the following as of December 31, (in thousands)Step by Step Solution
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