Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Assume Foodie Company reports the following footnote in its 1 0 - K report. December 3 1 ( million ) 2 0 2 1 2

Assume Foodie Company reports the following footnote in its 10-K report.
December 31(million)20212020
Raw materials and work process $18300 $15400
Finished goods 62003300
Unbilled shipments 24001000
Total 2690019700
Less revaluation to LIfo (870)(580)
$26030 $19120
The company reports its inventories using the LIFO inventory costing method. Assume Foodie has a 35% income tax rate. As of the 2021 year-end, how much (in millions) has Foodie saved in taxes by choosing LIFO over FIFO method for costing inventory?
For the Year 2021, how much did Foodie save in taxes by choosing LIFO over FIFO method for costing Inventory?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

6th edition

978-0077400163

Students also viewed these Accounting questions