Pretzel Company uses the LIFO cost flow assumption for its inventory. Pretzel is analyzing its...
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Pretzel Company uses the LIFO cost flow assumption for its inventory. Pretzel is analyzing its inventory at the end of 2020, and the following information is available for the companys inventory at 12/31/20.
Cost $240,000
Expected selling price $400,000
Estimated selling costs $60,000
Normal profit margin $80,000 (20% of selling price)
Replacement cost $180,000
Using this information, what amount should appear for inventory on Pretzel Companys 12/31/20 balance sheet? Show your work for full credit.
Provide the journal entry, if any, required:
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