Question
Plant Company began operations in 2016 and determined its ending inventory at cost and at lower-of-LIFO-cost-or-market at December 31, 2016, and December 31, 2017. This
Plant Company began operations in 2016 and determined its ending inventory at cost and at lower-of-LIFO-cost-or-market at December 31, 2016, and December 31, 2017. This information is presented below.
Cost Lower-of-Cost-or-Market Cost Lower-of-Cost-or-Market
Cost Lower of cost or Market
December 31, 2016 $87,000 $71,000
December 31, 2017 $100,000 $98,000
December 31, 2018 $97,000 $97,000
Prepare the journal entries assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used.
12/31/16
12/31/17
12/31/18
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