Question
Company A usually calculates its inventory values using LIFO for its shampoo, conditioner, and body wash products. Starting this year, the company needs to value
Company A usually calculates its inventory values using LIFO for its shampoo, conditioner, and body wash products. Starting this year, the company needs to value its inventory on Lower-of-Cost-or-Net Realizable Value instead. Using the following information, identify what the dollar values of each of these inventory pieces would be on Company A financial statements and what method you used to value that product.
| Inv. Item | Shampoo | Conditioner | Body Wash |
| Retail Value | $ 10 | $ 11 | $ 15 |
| LIFO Value | $ 8 | $ 7 | $ 5 |
| Selling Expense | $ 1 | $ 1 | $ 1 |
| Cost to Finish | $2 | $1 | $3 |
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Governmental and Nonprofit Accounting
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
10th edition
132751267, 978-0132751261
