Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Spando Apparel uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure

image text in transcribed
Spando Apparel uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report Inventories (5 in millions): Total Inventores LIFO reserve 2021 5670 (113) 2020 5649 (66) SSN The company's income statement reported cost of good sold of $3,270 million for the fiscal year ended December 31, 2021 Required: 1. Spando adjusts the UFO reserve at the end of its fiscal year Prepare the December 31, 2021, adjusting entry to record the cost or goods sold adjustment 2. If Spando had used FIFO 10 value its inventories, what would cost of goods sold have been for the 2021 fiscal year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Essentials Of Cost Accounting For Health Care Organizations

Authors: Steven Finkler, Judith Baker, David Ward

3rd Edition

0810235447, 9780763738136

More Books

Students also viewed these Accounting questions

Question

Are the investments going to be supported by the stakeholders?

Answered: 1 week ago